Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
EUR/USD Boosted by Robust Euro-Zone Business Activity

EUR/USD Boosted by Robust Euro-Zone Business Activity

Nick Cawley, Senior Strategist


Talking Points

- New orders, employment and export growth rates all hit multi-year highs.

- Inflation picks up on higher commodity prices and the weaker Euro.

- See the DailyFX Economic Calendar and see what live coverage for key event risk impacting FX markets is scheduled for the week on the DailyFX Webinar Calendar.

The Euro-Zone started 2017 in robust health, according to the latest PMI manufacturing data, with new orders and employment hitting multi-year highs. The final Euro-zone manufacturing PMI rose to 55.2 in January from 54.9 and beat expectations of 55.1. The headline PMI has signaled expansion in each month since July 2013.

Commenting on the final manufacturing PMI data, Chris Williamson, Chief Business Economist at IHS Markit said: “Euro-Zone manufacturing is off to a strong start to the year, enjoying the fastest rate of expansion for almost six years in January.Rates of growth of new orders, exports and employment have all hit multi-year highs, with the depreciation of the Euro playing a key role in helping drive new sales in export markets.”

Inflationary pressures were seen increasing in the 28-country bloc due to a weak Euro and higher commodity prices. The data also suggest thatdemand is running ahead of supply, pointing to a tentative build-up of core inflationary pressure, ECB President Mario Draghi’s preferred measure of inflation.

EURUSD picked-up a touch on the news, underpinning Tuesday’s push higher. The pair traded around 1.0794, and pushed back towards the spike high seen in mid-December.

Chart: EURUSD 60-Minutes Timeframe (November 2016–February 1, 2017

--- Written by Nick Cawley, Analyst

To contact Nick, email him at

Don't trade FX but want to learn more? Read the DailyFX Trading Guides

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.