Market news
24.01.2020, 13:09

EUR falls after PMIs data, ECB meeting outcomes

 
TimeCountryEventPeriodPrevious valueForecastActual
08:15FranceManufacturing PMIJanuary50.450.651.0
08:15FranceServices PMIJanuary52.452.251.7
08:30GermanyServices PMIJanuary52.95354.2
08:30GermanyManufacturing PMIJanuary43.744.545.2
09:00EurozoneManufacturing PMIJanuary46.346.847.8
09:00EurozoneServices PMIJanuary52.852.852.2
09:30United KingdomPurchasing Manager Index Manufacturing January47.548.949.8
09:30United KingdomPurchasing Manager Index ServicesJanuary505152.9


In today's European trading, EUR fell against most major currencies as flash PMI data for Germany and Eurozone did not impress the market participants. IHS Markit's report revealed that Eurozone's private sector expanded in January 2020 at a similar pace as in December 2019. Eurozone Composite PMI came in at 50.9 in January, unchanged from the previous month and missing economists' forecast for 51.2. A reading above 50 signals an expansion in activity, while a reading below this level signals a contraction. The overall expansion in business activity was again centered on the service sector, which, however, rose at a slightly weaker pace than in December (Flash Eurozone Services PMI was at 52.2, down from 52.8 in December). Meanwhile, manufacturing production remained in contraction, but the rate of decline eased to the softest in five months (Flash Eurozone Manufacturing PMI was at 47.8, down from 46.3 in December). In a separate report, IHS Markit announced that Germany's private sector gained momentum in January as services activity expanded at the fastest rate in five months, while a pace of decline in manufacturing slowed to the weakest level since August last year. Flash Germany Composite Output Index stood at 51.1 at the start of the year, up from 50.2 in December. That was the highest reading since August 2019. 

In addition, EUR continues to see pressure after the ECB did not make any policy change on Thursday. ECB President Christine Lagarde said yesterday that the central bank sees signals of a moderate increase in core inflation, while downside risks to the Eurozone economy have become less pronounced. Lagarde's statements were taken by traders as a signal that the ECB will stick to the previous course of monetary policy. She called on Eurozone countries to "significantly step up" structural reforms, which, according to experts, may signal the Central Bank's reluctance to change policy in the near future.

Elsewhere, USD/CAD traded above a 1.3100-level ahead of the release of Canada's retail sales data. Economists expect to see a rebound of 0.4% m/m for November after a 1.2% m/m decline in October.

AUD weakened against USD, correcting after Thursday's advance, which was triggered by strong jobs data out of Australia.

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location