German manufacturing PMI helped the EUR/USD pair to increase value after resulting better than predicted. 

On Friday, IHS/Markit research showed how the German Manufacturing PMI, which was estimated to be at 44.5, came at 45.2 this month. German Services PMI also bettered forecasts, resulting at 54.2 – a five-month high level. 

The slower contraction in the German manufacturing sector helped the pair to jump almost 10-pips to open the session at 1.1056. 

HIS Markit’s Principal Economist, Phil Smith said, “A number of positive takeaways from January’s flash PMI survey suggest the storm clouds over the German economy may be starting to clear.” He added, “Demand has started to firm up a little both at home and abroad, which is reflected in a first rise in new business for seven months.”

On Thursday, the EUR/USD pair faced selling pressure that led it to seven-week lows. Policy rates and the forward guidance remained unchanged by the ECB

Furthermore, the GBP/USD continues to stay over the 1.31 handle, with Markit's preliminary PMIs yet to be issued. The Bank of England may be issuing a rate cut at the end of the month, which pushed the demand for the U.S. dollar. 

The latter currency was also boosted by China's coronavirus outbreak, gaining it a safe-haven status when put against the sterling.