The euro has made gains in forex trading this afternoon (February 5th), as key services sector data indicates the industry is improving.
Markit's purchasing managers' index (PMI) rose to 48.6 in January from 47.8 in December.
However, even though this was better than the previous month, it marked the services sector's 12th consecutive monthly decline because PMI data that is below the benchmark of 50 indicates contraction.
Therefore, even though the PMI data still shows shrinkage, the pace of decline is easing.
Chris Williamson, chief economist at Markit, stated: "The eurozone is showing clear signs of healing, with the downturn easing sharply in January and the region moving closer to stabilisation in the first quarter."
Much of the growth in the sector was witnessed in Germany, while fellow 'big four' economies France, Italy and Spain continue to lag behind.
At 16:50 GMT, the euro advanced by 0.5 per cent in trading with the dollar to €1 buying $1.358, while the single currency made 1.2 per cent gains versus the pound to £0.867.
Learn about the dollar and forex trading at City Index.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.