GBP/CHF hits as high as 1.2271 so far today. The break of 1.2259 resistance is tentatively seen as signal of resuming whole rebound from 1.1102. Further rise is now expected as long as 1.2145 minor support holds. Next target is 61.8% projection of 1.1102 to 1.2259 from 1.1683 at 1.2398. Firm break there would bring upside acceleration to 100% projection at 1.2840.
USD/CHF’s break of 0.8925 also suggests resumption of rebound from 0.8756. Further rise should be seen to 0.8998 support turned resistance first, which is close to 100% projection of 0.8756 to 0.8925 from 0.8837. Firm break there will argue that rebound from 0.8756 is indeed correcting the whole down trend from 0.9901 to 0.8756, and target 38.2% retracement at 0.9193.
Eurozone PMI manufacturing finalized at 54.8, solid expansion continued
Eurozone PMI Manufacturing was finalized at 54.8 in January, down from December’s 55.2. Markit said the marked gains in new orders and output sustained. But delivery delays intensified, leading to rapid rise in purchase prices. Looking at some member states, the Netherlands hit 28-month high at 58.8. Germany retreated to 4-month low at 47.1. Italy hit 34-month high at 55.1. Australia hit 26-month high at 54.2. France recovered to 6-month-high at 51.6. But Spain contracted at 49.3, 7-month low.
Chris Williamson, Chief Business Economist at IHS Markit said: “Eurozone manufacturing output continued to expand at a solid pace at the start of 2021, though growth has weakened to the lowest since the recovery began as new lockdown measures and supply shortages pose further challenges to producers across the region… While future prospects brightened, with manufacturers’ optimism striking a three-year high in January to sound a reassuring note of confidence at the start of the year, any potential delays to the vaccine roll-outs will add an additional layer of uncertainty to the outlook.”
Full release here.