Euro Nears $1.39 On Positive PMI Data

The euro made its way toward $1.39 following last week's promising PMI figures.

The common currency traded at $1.3875 at 5:00 GMT on Monday morning as investors assessed the bloc's economic data to get a better idea of the European Central Bank's plans for it's May policy meeting.

April PMI data showed that eurozone factory activity picked up as the second quarter began, a promising sign for the region's slow-moving recovery.

However, the data was not all positive; France's figures were disappointing as the nation's factories struggled to get back on track.

The eurozone's manufacturing PMI was at 53.4 in April, up from March's 53.0 reading. The bloc was lead by Germany, the eurozone's largest economy, and Italy, where the PMI reading rose to a three year high.

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France was on the bottom of the spectrum with a reading of just 51.2.

The data indicated that the region's recovery is on track despite dangerously low inflation figures. April's inflation figure was at 0.7 percent, a jump from March's 0.5 percent, but still far below the European Central Bank's two percent target.

All eyes will be on the ECB this week as the bank prepares for its policy meeting on Thursday.

Although bank president Mario Draghi assured investors that the bank was prepared to act using unconventional measures if low inflation readings persisted, Financial Times reported that most analysts are betting that the bank will hold off on a policy move until June.

With most of the bloc's economic indicators suggesting that the economy is on the upswing, the bank won't be under as much pressure to ease further.