The Eurozone and German manufacturing data show that the Euro has had a solid start to the new year, with the economy continuing to expand.
Euro Receives New Year Boost
Upon traders returning to work after the holiday, the Euro began the year above the 1.20 level against the dollar. This was boosted by data from IHS Markit that showed the German manufacturing Purchasing Managers Index had reached a record of 63.3 during December. The report highlighted that production growth in the final month of 2017 had not been witnessed since the start of 2011. The report also revealed that Germany had experienced one of the biggest increases in export orders ever recorded.
German goods production had dramatically increased at the end of the fourth quarter of 2017, with the rate of growth being the fastest recorded over the past seven years. The report also stated that new order growth in Germany had reached its highest level for almost eight years, with the nation also showing historically high levels of business confidence.
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Eurozone Manufacturing PMI Strong
The strong manufacturing numbers for Germany were mirrored by figures for the Eurozone as a whole, with the manufacturing PMI reaching 60.6 in December.