Market Outlook: Lagarde's Statements Limited Euro Strength

Forex - The Euro rose against the dollar following a better-than-expected Eurozone purchasing managers' index survey. However, gains remained modest due to European Central Bank President Christine Lagarde's comments about the potential for further interest rate cuts because of the threat of U.S. tariffs on already weak growth expectations.

The Eurozone composite PMI increased from 48.3 in November to 49.5 in December. Economists surveyed by the WSJ had anticipated a value of 48.3. However, a value below 50 indicates a contraction in economic activity.

Composite PMI figures for France and Germany also surpassed expectations. The Euro rose 0.3% to $1.0524, having been at $1.0511 before the Eurozone PMI data was released.