Euro area PMIs likely to have dropped marginally in January

Business sentiment in the euro area, as gauged by the PMI is at a higher level currently. The manufacturing PMI had risen in December to 60.6, just below a record high. The service sector PMI stands at a very respectable level of 56.6. The PMI data for January is set to be released this week. According to consensus expectations manufacturing and services PMIs are likely to have dropped marginally in January, but at a strong level.

The ECB is set to hold a regularly schedules policy meeting on Thursday. Even if nobody looks for a change of policy at the meeting, market participants are expected to scrutinize the statement for hints about potential policy changes later in 2018, stated Wells Fargo in a research report.

At 18:00 GMT the FxWirePro's Hourly Strength Index of Euro was neutral 0.202394, while the FxWirePro's Hourly Strength Index of US Dollar was slightly bearish at -64.812. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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