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Euro shy after PMI boost ahead of EcoFin meeting
Seems the common currency was shy in the final hours of the European morning trade, as traders shift focus onto the meeting the European Union finance ministers kicking off today following Monday`s meeting of Euro zone ministers in Brussels.
The obvious outcome from yesterday`s meeting for the euro was that austerity targets for growth-thirsty countries, Like France and Italy, may be relaxed. But the PMI and retail sales data from euro zone came quiet handy for the 17-nation common currency.
Firstly, the bloc`s services PMI revealed that the sector didn`t shrink by as much as previously estimated. However, the downturn was the main these and the composite output index for February were still lower than the mark of January`s 10-month high index.
Sales at euro zone retailers topped the slim expectations, with an increase of 1.2 percent for January, but the release did not truly support the sentiment towards the euro. Still, the results are quite strong compared to 0.8 percent drop in December.
As of 12:37 GMT, the euro was little changed at $1.3030, hours after the currency gained more than 40 points against its U.S. counterpart, setting a two-day high of $1.3074. The pair rests now slightly above the $1.30 mark, await another round of GDP data.
While many data looks to have broken the euro silence, even if for a couple of hours, the market will be anticipating tomorrow`s Euro zone GDP numbers, which if similarly beat expectations the euro could resume the upward movement seen at the start of this year.