Euro Nears $1.20, Then Pares Gains After Eurozone PMI Data

 

The euro pares gains after coming within a whisker of the $1.20 level as a key survey confirmed eurozone manufacturing activity growth eased slightly in August. The final IHS Markit eurozone manufacturing purchasing managers’ index for August fell to 51.7 from 51.8 in July with a level above 50 indicating an expansion in activity. “A key theme of the latest survey is one of firms taking a cautious approach to costs and spending, notably in respect to investment and hiring, amid continued worries about the strength of future demand and uncertainty over the course of the pandemic,” Markit economist Chris Williamson says. EUR/USD last trades up 0.2% on the day at 1.1964, having reached the highest since April 2018 at 1.1999 shortly before the data, according to FactSet.