Eurozone PMI Positive, But Uneven

The euro climbed closer to $1.38 on Tuesday after positive PMI data confirmed that business activity in the eurozone picked up in December. The common currency traded at $1.3771 at 5:15 GMT on Tuesday morning. The

reported that Markit's composite Purchasing Managers Index climbed to 52.1 in December from 51.7 in November. The figure was higher than expected and showed that the region was moving further from the 50 point mark that separates expansion from contraction. The data's release pushed the common currency closer to $1.38 as confidence in the region's recovery returned. The eurozone's latest PMI readings have all been strong, indicating that the bloc's economy continued to expand in the fourth quarter. The growth, however, is expected to be moderate at best. The PMI report also painted a bright future for the region as businesses reported the largest influx of new orders since June 2011. France's PMI data cast a dark shadow on the regions results. Business and manufacturing activity in the region's second largest economy fell to a seven month low in December, indicating that the eurozone's recovery will likely be uneven. French business activity slipped to 47.0 this month, far below analysts' predictions. The euro also found support from renewed political stability after German Chancellor Angela Merkel secured her new coalition government with the Social Democrats. Merkel's coalition was approved over the weekend and she will likely be sworn in for her third term as Chancellor on Tuesday. The newly formed government has planned a controversial agenda of spending increases and labor reforms that some business leaders believe will tear down the nation's bustling economy.