The Euro is trading firmer against the Pound on Monday following the release of services purchasing managers index data which showed that Spain’s service sector expanded at its fastest pace in six-and-a-half years.
According to Markit’s PMI of services the sector in Spain expanded to 54.2 in December, up from the 51.5 recorded in November and better than economic forecasts. The rise was the second straight increase in two months. Any figure above 50 indicates expansion, whereas a figure below marks contraction.
“The latest services PMI data provide real optimism that in 2014 we could finally see the start of a meaningful economic recovery in Spain, activity and new business each rose at rates not seen since prior to the economic crisis, although the extent to which companies are relying on discounting to support growth of orders remains a worry,” said Andrew Harker, an economist at Markit.
The positive Spanish data went some to allaying concerns generated by France and Germany whose PMI’s both saw a slight decline in December.
The Euro found further support against an already softened Pound after UK services PMI data showed an unexpected decline in December. Sterling was already under pressure following comments made by UK chancellor George Osborne who said that more austerity measures will be needed.
“More strong growth looks likely as we move into 2014,” said Markit’s chief economist, Chris Williamson. “It is perhaps inevitable, however, that we may see the rate of growth slow compared with the unusually strong pace seen in recent months.”
The UK PMI fell to a six-month low of 58.8 in December, down from November’s figure of 60.
Euro (EUR) Exchange Rates
As of 10:10 am GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3606
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8318
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5193
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6440
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4457
The Euro/ Japanese Yen Rate Exchange Rate is currently in the region of: 142.3092
The Euro/Swiss Franc Exchange Rate is currently in the region of: 1.2311
The Pound Sterling/ Euro Exchange Rate is currently in the region of: 1.2019
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7350
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6581
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6081
The Canadian Dollar/Euro Exchange Rate is currently in the region of: 0.6916
Swiss Franc/Euro Exchange Rate is currently in the region of: 0.8122
