EZ Advance PMI data confirms a broad-based EUR uptrend

The big data event this morning concerns PMI's out of the Eurozone. They have beat expectations and this has allowed the Euro to become the key driver on forex markets today.

Eurozone July Advanced PMI manufacturing at 50.1 v 49.1 expected; services at 49.6 v 48.7.

The composite PMI output index rose to 50.4 from 48.7 in June on the back of stronger data from Germany and France, fuelling optimism that the Eurozone economy could emerge from a recession in the third quarter.

Germany’s manufacturing PMI rose to 50.3 from June's reading of 48.6, and the service sector PMI jumped to 52.5, from 50.4.

The French manufacturing PMI ticked up to a 17-month high of 49.8 from 48.4 in June, while France’s services PMI improved to 48.2 from 47.2 last month.

Ahead for the British pound we have CBI data at 11 AM.

"The UK CBI business optimism survey for July is due for release later in the morning. We expect the output series to recover, in part reflecting firmer orders and, in part, a lagged response to the manufacturing PMI, which has risen consecutively over the past four months," say Lloyds Bank Research.

In the light of the strong reading from the Eurozone we doubt the CBI data will be able to shift the British pound by any significant degree.