German flash Manufacturing PMI climbs to 58.6 in December vs. 56.4 expected

• German Manufacturing PMI arrives at 58.6 for December vs. 56.4 expected.
• Services PMI in Germany rose to 47.7 in December against 44 anticipated.

According to the preliminary manufacturing activity report from IHS/Markit research, released this Wednesday, the flash version of the German Manufacturing PMI unexpectedly rose to 58.6 in December. The reading was well above consensus estimates pointing to a fall to 56.4 from 57.8 recorded in the previous month.

Meanwhile, the gauge for the services sector also surpassed market expectations but remained in the contraction territory, coming in at a two-month high level of 47.7 for December.

FX implications

The upbeat PMI prints provided a modest lift to the shared currency and pushed the EUR/USD pair to fresh YTD tops, with bulls now eyeing a move towards reclaiming the 1.2200 mark.