Sat. Jan 29th, 2022

While the eurozone PMI composite came out higher than expected in July 60.6 (vs 60 estimated) and rising for the fifth successive month, PMI in the UK fell considerably and unexpectedly to 57.7 from 62.2 in June, compared to the agreement of 61.5.
On the UK side, the economic recovery has actually been stronger due to the success in its vaccination programme and new daily Covid-19 cases have been coming in lower throughout the past few days. However, it will be important to see if this is sustained in the long run offered the reopening could assist to spread out the virus more rapidly.
Threats continue to be on the table for the euro location with the delta variant spreading throughout the continent. Inflation has been well listed below the ECBs target, which has actually supplied some additional assistance for the central bank to keep its ultra-dovish tone and favourable financing conditions.
Muted response in the currency market with both the euro and pound attempting to recover some of the losses against the dollar, checking the $1.18 and $1.38 resistance levels.


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Wizadclick | WAC MAG 2022