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Eurozone Flash PMI Readings Improve Mildly

Last updated 1/23/2009 3:55 AM ET (GMT -5) 0 Comments - Add your comment

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Boris Schlossberg

Director of Currency Research, GFT

Eurozone flash PMI reading improved slightly in January with almost all of the gains coming from France while German data simply held its own. French PMI Services report increased to 42.9 from 40.6 the month prior while the Manufacturing data jumped to 38.1 against 34.9 in last period's reading. On the German side the data remained steady with Manufacturing at 32 against 32 expected while Services printed at 45.4 versus 45.5 forecast.

Overall the PMI readings remain well below the 50 boom/bust level and suggest that any improvement is merely incremental as the region's economy remains mired in the worst recession in 50 years. The news had virtually no impact on EUR/USD& nbsp; trade which continued to slide on risk aversion flows. The pair now stands well below the 1.3000 level and could target the 1.2800 handle as trading moves towards the North American session and all eyes turn to GE which reports its results ahead of the US market open

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About The Author

Boris Schlossberg began his Wall Street trading career more than 20 years ago at Drexel Burhnam Lambert. There, he traded nearly every type of financial product on the market in the U.S., from equities and options to stock index futures and foreign exchange. His innate ability to analyze market information and use it to trade has helped him become an industry-recognized, “go to” trading professional.

These days, whenever the markets move, many organizations turn to Schlossberg for his take on the situation. He is a weekly contributor to CNBC's Squawk Box and a regular commentator for Bloomberg radio and television. His daily currency research is widely quoted by Reuters, Dow Jones and Agence France Presse newswires and appears in numerous newspapers worldwide. Schlossberg has written for publications like SFO magazine, Active Trader and Technical Analysis of Stocks and Commodities. He is also the author of Technical Analysis of the Currency Market and the co-author of Millionaire Traders: How Everyday People Are Beating Wall Street at Its Own Game with Kathy Lien. He joined GFT in 2008.