EUR/USD hits weekly lows sub-1.10 as German Flash Manufacturing PMI surprises negatively with 41.4
The German manufacturing sector contraction deepened in September, the latest manufacturing activity report from IHS/Markit research showed this Monday.
The German Manufacturing purchasing managers index (PMI) arrived at 41.1 versus 44.0 expected and 43.5 previous, hitting the lowest levels in over a decade. Meanwhile, services PMI hit a nine-month low level of 52.5 as against previous months reading of 52.5 and 54.3 anticipated.
The IHS Markit Flash Germany Composite Output Index came in at 83-month lows of 49.1 in September vs. August’s 51.7 and 51.4 expectations.
Key comments from Phil Smith, Principal Economist at IHS Markit:
“Another month, another set of gloomy PMI figures for Germany, this time showing the headline Composite Output Index at its lowest since October 2012 and firmly in contraction territory.”
“The economy is limping towards the final quarter of the year and, on its current trajectory, might not see any growth before the end of 2019.”
“The manufacturing numbers are simply awful. All the uncertainty around trade wars, the outlook for the car industry and Brexit are paralyzing order books, with September seeing the worst performance from the sector since the depths of the financial crisis in 2009.
On worsening German PMI numbers, the selling interest around the EUR picked up pace, knocking-off the EUR/USD pair to fresh weekly lows near 1.0970.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
