EUR/USD has stabilized on Thursday, after recent losses which have pushed the euro below the 1.27 line. On the release front, there was good news out of Germany as Manufacturing PMI improved in September. In Spain, the unemployment rate dipped to 23.7%, its lowest level since Q4 of 2011. In the US, today’s highlight is Unemployment Claims. The markets are expecting another excellent showing, with a forecast of 269 thousand.
Eurozone PMIs are carefully monitored by the markets, as they provide an important gauge of activity in the manufacturing and services sectors. German Manufacturing PMI led the way with a reading of 51.8 points, easily beating the estimate of 49.6 points. French Manufacturing PMI failed to keep pace, slipping to 47.3 points. This was short of the estimate of 48.6 points. Other PMIs met expectations.
The Deutsche Bundesbank issued its monthly report on Monday. The German central bank said that the economy showed little growth in the third quarter, as manufacturing production fell and business confidence weakened. At the same time, employment numbers and consumer spending were higher, so GDP was likely to remain unchanged. As for Q4, the report stated that the outlook is “moderate”. The report underscores weakness in the German economy, long considered the locomotive of Europe. The euro is sensitive to German data, so weak German numbers could hurt the shaky euro.
EUR/USD 1.2665 H: 1.2670 L: 1.2614
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