Euro Stable After Better Than Expected PMI

Better than expected European PMI manufacturing reports and narrowing euro zone spreads have provided some support for the euro

but the gains are unlikely to be sustained. Euro zone PMI manufacturing, at 52.4 in January was the highest since January 08 and beat the consensus (52.0). Regional reports from Germany (53.7 vs 53.4 expected ), France (55.4 vs. 54.7 expected) and Italy (51.7 vs. 51.2 expected) were also stronger than expected.