Despite weak performance in the manufacturing sector, the European currency continues to make attempts to grow against the US dollar. It is maintaining an upward price channel.

It was only in Italy where there was an increase in the index of production while in France and Germany, the similar index slowed slightly.

According to the report of the statics agency, the index of supply managers for the manufacturing sector in Italy for the month of January this year rose to 59.0 points, compared to 57.4 points in December last year. Economists predicted the index at the level of 57.3 points.

In France, there is a marked decrease in activity in the manufacturing sector. According to the report, the index of supply managers for the manufacturing sector in January fell to 58.4 points against the December index of 58.8 points. Economists and market participants did expect a decline to the level of 58.1 points.

In Germany, the index of supply managers also slowed its growth. According to the data, PMI for Germany's manufacturing sector in January fell to 61.1 points against 63.3 points in December 2017. Economists had expected the index to fall to the level of 61.2 points.

If we talk about the euro area as a whole, then there is also a slight decline. According to the statistics agency, the index of supply managers PMI for the production area of the eurozone in January dropped to 59.6 points, compared to 60.6 points in December. The data fully coincided with the forecasts of economists.

It is important to note that finding the index above the level of 50 points indicates an increase in activity.

The current data that's at a rather slight decline in indicators at the beginning of this year will not likely affect the data on GDP seriously in the first quarter of 2018, which is confirmed by the market reaction to the data.

As for the technical picture of the EURUSD pair, so far the situation is developing in favor of buyers as it managed to keep the trade in an upward price channel. The lower limit of this level is at the January 30 low. The breakthrough of resistance at the level of 1.2470 opens up good prospects for the EURUSD pair for further growth of the trading instrument in the area of annual maximums at 1.2540.

A similar index that's already in the UK, also did not put pressure on the British pound, even despite its slowdown to a 6-month low.

According to a report by research company IHS Markit Ltd., the index of supply managers for the UK manufacturing sector in January was 55.3 points compared to 56.2 points in December. The value of the index above 50 indicates an increase in activity. Economists had expected the index to be 56.5 points.