Forex: EUR/USD capped at 1.2868 again after PMI data

FXstreet.com (Barcelona) - The EURUSD touched the Asian high at 1.2868 made in reaction to Fed's Williams comment in favor of more bond buying in the US and ahead of China's HSBC manufacturing data (flash) that turned out to confirm a rebound at 50.4. This time, the pair rallied to 1.2868 as Markit manufacturing PMI data (flash) was released.

The French preliminary number for November rose from 43.7 to 44.7, beating consensus of 44.0. Services PMI improved from 44.6 to 46.1, above the expected 45.0. In Germany, data surprised by rising to 46.8 instead of remaining unchanged at 46.0 as expected. However, the services figure eased from 48.4 to 48.0. In the Eurozone, the manufacturing figure rose from 45.4 to 46.2 in November (consensus of 45.5), while the Services PMI softened from 46.0 to 45.7 (consensus of 46.0), leaving the PMI Composite little higher, from 45.7 to 45.8, in line with expectations.

Profit taking has sent the EURUSD back to 1.2855 area. "Current slide below 1.2870 high should be considered corrective and my outlook is positive above 1.2810 support, for a rise towards 1.3020", wrote Windsor Brokers analyst Slobodan Drvenica, pointing to crucial support at 1.2736.