German and French December PMI data in focus for the EUR/USD this morning

There are a whole batch of preliminary European PMI data (Services and Manufacturing) releases this morning. The first comes from France (8.15am GMT), then Germany (8.30am GMT) and finally from the UK at 9.30am GMT. The markets are not expecting particularly good news from any of that lot. Right now though the EUR/USD has lifted from the overnight low, at 1.0484. That rebound comes despite another French Sovereign debt downgrade, this time from Moodys. The high seen in the EUR/USD has been set at 1.0523. So, as you can see the price action continues to remain mostly pivotal around d that 1.05 handle. It seems clear that the prospect of a Fed rate cut on Wednesday evening is keeping the dollar in check and that is stopping the Euro from falling back. As to whether that is the case by the weekend is an entirely different matter. The German and French PMI data this morning could have a bearing on that too. The EUR/USD is currently trading at 1.0517