Today, a number of reports came out that testified, albeit indirectly, that the European economy could easily survive the recession than previously expected. In January, the indices in a number of countries in the service sector moved below 50 points, which indicated a drop in growth, then the February data was more optimistic.
Thus, the PMI Purchasing Managers Index for Italy in February was 50.4 points, while in January the index was at the level of 49.7 points. Economists had forecast a figure of around 49.2 points.
The PMI Purchasing Managers Index for France in February rose to 50.2 points, while it was projected at 49.8 points. Back in January, this index was 47.8.
Germany continues to be the leader of the eurozone. There, a similar PMI purchasing managers index for the service sector rose to 55.3 points in February, while it was projected at 55.1 points. In January, the index was 53.0 points.
As for the euro area as a whole, then the purchasing manager's index for the service sector was at the level of 52.8 points in February against 51.2 points in January, which should definitely please the European regulator. Predicted the index at 52.3 points.
The composite PMI of the eurozone also increased slightly in February and amounted to 51.9 points against 51.0 points in January, while the forecast was 51.4 points.
A good report on retail sales in the euro area is also a sign of the recovery of the European economy. According to the European Bureau of Statistics, retail sales growth in the eurozone resumed in January after a sharp slowdown in late 2018. Thus, sales in stores and the Internet in January increased by 1.3% compared with December and by 2.2% compared with January 2018.
The report indicates that the main reason for the growth in sales was the improvement in consumer sentiment and the acceleration of earnings growth.
As for the technical picture of the EURUSD pair, it remained unchanged compared with the morning forecast. At least the bulls managed to stop the fall of the euro.
Only a confident break of the 1.1340 range will allow the trading instrument to retain a correction impulse, which will lead to the highs of 1.1370 and 1.1405. In the event of a further decline in the euro, it is best to rely on purchases in the area of major support 1.1270 and 1.1230.
The material has been provided by InstaForex Company - www.instaforex.com