Economic data from the European Zone and the UK graced the opening of the European session trading today by displaying mixed readings in February.
The services sector in the European Zone bounced back with stronger growth this month as the easing of coronavirus restrictions led to new demand for consumer services such as travel, tourism and recreation.
Business confidence in prospects also improved as companies looked to further economic reopening that encouraged increased hiring.
However, the manufacturing sector, on the other hand, recorded a decline in February as it was affected by protracted supply chain disruptions amid rising demand.
The initial reaction of the euro following this publication showed it was slightly affected by the decline around the price of 1.1360 against the US dollar.
In addition, investors also saw the release of manufacturing and services data from the UK, both of which posted positive readings in February.
Like the European Zone, Britain also saw an increase in services activity with the fastest growth in eight months. This unexpected expansion was aided by a strong recovery in consumer spending on travel, recreation and entertainment.
Meanwhile, manufacturing activity was unchanged from the previous reading, indicating that the manufacturing sector was affected by supply disruptions due to high costs (inflation).
The pound changed little following the release of the data by remaining strong at around 1.3620 against the USD.
