EURUSD fell slightly and trading at 1.0851.
On Thursday, the EURUSD fell slightly. The EURUSD is trading at 1.0851, down 0.11% in the European session.
The eurozone has no releases on the data calendar.
The US releases jobless claims and durable goods orders, and the EURUSD might move in the North American session. Germany will publish the Ifo Business Climate on Friday. The index has fallen for three months in a row, and the decline is predicted to continue (87.3 in July, 86.7 expected).
After dismal German and eurozone PMIs, the Euro yawns.
The EURUSD has recovered some of its losses following the release of disappointing PMIs.
The Eurozone and German PMIs were not encouraging in August. Manufacturing and service sector data indicated decrease. Germany’s manufacturing sector has been particularly sluggish, despite a minor increase in the Manufacturing PMI to 39.1 in August, up from 38.8 in July and the consensus expectation of 38.1. The Eurozone Manufacturing PMI increased to 43.7 in August, up from 42.7 in July and the forecast of 42.6 points.
The services industry is in better form and will continue to grow until 2023. This trend came to a halt on Wednesday, when the German and Eurozone Services PMIs dipped into contraction territory in August (a value of 50.0 distinguishes between growth and contraction). Germany fell to 47.3, down from 52.3 in July and below the 51.5 predicted. Similarly, the eurozone dropped to 48.3 percent, down from 50.9 percent. and fell short of the forecasted 50.5 points.
The EURUSD fell as a result of the negative PMI results, but it recovered quickly. The data reinforces the ECB’s case for a pause, since slowness in manufacturing and services indicates that the eurozone economy is slowing. A pause would allow the ECB to assess the impact of recent rate rises on the economy and inflation. Futures traders see the September meeting as a coin flip between a 25 basis point increase and a halt.
