"Although [the PMIs are] consistent with a mere 0.2 per cent expansion of GDP during the final quarter, the PMI signalled a strong turnround in the health of the economy during the course of 2013, and stronger growth looks likely for the first quarter of 2014"
- Chris Williamson, chief economist at Markit
The single currency was little changed against the U.S. Dollar on Monday after the release of the fundamental data from Europe, while the pair inched higher after better-than-expected inflation data from Germany, and disappointing services PMI in the United States. The pair touched a strong resistance at 1.3652 and then turned lower to 1.3636.
A report complied by Markit showed activity in the 18-nation economy rebounded last month, accelerating at a pace previously seen in mid-2011, suggesting this year the bloc has a potential to post a solid growth. The composite purchasing managers' index stood at 52.1 in December, up from 51.7 a month earlier. Activity was mostly boosted by a strong output showing from factories, where activity surged at the fastest rate for two-and-a-half years. Also Monday, Markit said that the region's services sector remained in the positive territory last month, though the pace of expansion lost some steam. The services PMI eased to 51.0 points from 51.2 seen in November.
During the last couple of years, the Eurozone was mostly led by its powerhouse– Germany. And Monday's report from the Federal Statistical Office, showing the cost of living in Germany picked up to 1.4% in December, is drawing bright prospects for Europe. On a monthly basis, CPI rose 0.4%, accelerating from 0.2% in November.
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