ForexLive European FX news wrap: Sterling gains after PMI data

<p>Headlines:</p><ul><li><a href="https://www.forexlive.com/news/eurozone-november-flash-services-pmi-482-vs-481-expected-20231123/">Eurozone November flash services PMI 48.2 vs 48.1 expected</a></li><li><a href="https://www.forexlive.com/news/germany-november-flash-manufacturing-pmi-423-vs-412-expected-20231123/">Germany November flash manufacturing PMI 42.3 vs 41.2 expected</a></li><li><a href="https://www.forexlive.com/news/france-november-flash-services-pmi-453-vs-456-expected-20231123/">France November flash services PMI 45.3 vs 45.6 expected</a></li><li><a href="https://www.forexlive.com/news/uk-november-flash-services-pmi-505-vs-495-expected-20231123/">UK November flash services PMI 50.5 vs 49.5 expected</a></li><li><a href="https://www.forexlive.com/news/uk-household-energy-bills-set-to-rise-as-ofgem-raises-price-cap-for-next-year-20231123/">UK household energy bills set to rise as Ofgem raises price cap for next year</a></li><li><a href="https://www.forexlive.com/news/france-november-business-confidence-97-vs-98-prior-20231123/">France November business confidence 97 vs 98 prior</a></li><li><a href="https://www.forexlive.com/centralbank/ecbs-nagel-it-is-too-early-to-talk-about-rate-cuts-20231123/">ECB's Nagel: It is too early to talk about rate cuts</a></li><li><a href="https://www.forexlive.com/news/goldman-sachs-raises-uk-real-gdp-growth-forecast-for-2024-to-07-from-06-previously-20231123/">Goldman Sachs raises UK real GDP growth forecast for 2024 to 0.7% from 0.6% previously</a></li></ul><p>Markets:</p><ul><li>GBP leads, CAD lags on the day</li><li>European equities mixed; S&amp;P 500 futures up 0.1%</li><li>Gold up 0.1% to $1,992.84</li><li>WTI crude down 1.0% to $76.37</li><li>Bitcoin down 0.5% to $37,435</li></ul><p><br></p><p>The PMI data in European trading today highlighted that both the euro area and UK economies were faring better than anticipated in November. However, they both reaffirmed more stubborn inflation pressures and that might be a bit of a cause for concern for the ECB and BOE heading into next year.</p><p>The euro got a brief spike higher from 1.0905 to 1.0930 but has given all of that back, with large option expiries near 1.0900 pinning EUR/USD down. But sterling is holding on to its gains, with GBP/USD up 0.5% on the day to 1.2550 and eyeing a firmer technical break as noted <a href="https://www.forexlive.com/news/cable-looks-to-shake-off-key-resistance-region-in-latest-push-higher-today-20231123/" target="_blank" rel="follow">here</a>.</p><p>Amid the Thanksgiving holiday, trading sentiment is more muted as the dollar keeps just slightly lower. USD/JPY is down 0.2% to 149.30 but is off its earlier lows of 148.90 in Asia, though with Treasuries out for the day there doesn't seem to be too much appetite.</p><p>Equities were more tepid as well, with European indices keeping little changed for the most part. In the commodities space, oil is facing a bit of a drag – down 1% to $76 levels – as the OPEC+ meeting remains in limbo for now.</p><p><br></p>

This article was written by Justin Low at www.forexlive.com.