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Forex Analysis
by ForexNewsNow Team on October 21, 2010

EUR/USD rises after Europe PMI data; U.S. jobs report eyed

intraday analysis - Timothy GeithnerNEW YORK (Forex News Now) – The euro rose against the U.S. dollar on Thursday, erasing earlier losses, on the back of upbeat reports on Germany’s manufacturing and services sectors and ahead of key U.S. jobs data.

In European morning currency market trading, EUR/USD hit 1.3969, up 0.04 percent on the day, after rising from the daily low of 1.3871.

The market research firm Markit said earlier that its purchasing managers’ index for Germany’s manufacturing sector rose to 56.1 during the month, from a revised 55.1 in September, and that its PMI for the country’s services sector rose to 56.6 from a revised 54.9.

Analysts had expected October’s manufacturing PMI to come in at 54.6 and the month’s services PMI to come in at 55, two major online FX trading news outlets reported.

According to EUR USD analysis, EUR/USD was likely to touch immediate support around Wednesday’s low1.3698, and encounter short-term resistance around Friday’s high, 1.4158.

The euro’s gains also came after the U.S. Treasury Secretary, Tim Geithner, suggested he sees no need for further weakness in the dollar.

The Wall Street Journal cited Geithner as saying major currencies are “in alignment” and that he will work to persuade leaders at G20 meetings that the United States is not trying to weaken the greenback.

Elsewhere, the single currency rose a tad versus the yen: EUR/JPY traded at 113.33, up 0.08 percent, according to intraday analysis.

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