The euro ignored good data on the eurozone services sector, which turned out to be much better than economists' forecasts. Growth in Italy and France in November this year was partially offset by weak data for Germany, where growth in activity in the service sector slowed.
According to the report of the statistics agency, the index of supply managers for the services sector of Italy in November this year rose to a level of 54.7 points after growth in October to 52.1 points. Economists had expected PMI for the services sector of Italy in November to be at the level of 52.8 points.
France also saw an increase in activity in the services sector, which in November this year rose to 60.4 points against 57.3 points in October. Economists had expected PMI for the services sector of France in November to be at 60.2 points.
As I noted above, the good indicators of the general index for the euro area were counterbalanced by a weak increase in the purchasing managers' index for Germany's services sector, which in November 2017 was 54.3 points higher against 54.7 in October. Economists expected the growth rate to reach 54.9 points.
Despite this, the euro area's services sector grew in November this year to 56.2 points against 55 points a month earlier. It was expected that the PMI index for the services sector of the euro area will be at 56.2 points. Apparently, good performance will have a positive impact on the overall economic situation of the eurozone in the fourth quarter of this year.
Despite the good data, the technical picture in the EURUSD pair did not change, as a small attempt at euro growth in the first half of the day was completely "spoiled" by weak data on retail sales for October.
According to the report of the statistical agency, retail sales in the euro area in October this year fell by 1.1% compared to September, compared with the same period in 2016, sales increased by 0.4%.
While the trade is below the level of 1.1880, we can expect the pressure on the euro to remain, which will lead to a support for 1.1815 with a very likely exit to the lower border of the downward price channel in the area of 1.1775.
The British pound declined on weak data on the growth of activity in the services sector of the UK in November this year. According to the report of IHS Markit Ltd, the index of supply managers for the service sector in November fell to 53.8 points from 55.6 points in October. Economists forecast a decline in the index to 55 points. Despite this, many experts expect the UK economy to show strong growth in the fourth quarter of this year, which will support the British pound in hopes of a further increase in interest rates from the Central Bank.