Euro Mixed After Eurozone PMI Data
September 23 2016 - 01:12AM
RTTF2
The euro showed mixed trading against the other major currencies
in the early European session on Friday, following the release of
Eurozone private sector activity data in September.
Data from Markit showed that Eurozone private sector grew at the
slowest pace in 20 months in September. The factory Purchasing
Managers index improved to 52.6 from 51.7 in August. The reading
was expected to fall to 51.5.
Meanwhile, the services PMI dropped to 52.1 from 52.8 in the
prior month. This was the lowest in 21 months. The score was
forecast to remain unchanged at 52.8.
Germany's private sector logged the weakest expansion in
activity in almost one-and-a-half years. The factory PMI improved
to 54.3 from 53.6 a month ago. The reading was expected to fall to
53.1.The composite output index fell to a 16-month low of 52.7 in
September from 53.3 in August.
The services PMI fell unexpectedly to a 39-month low of 50.6
from 51.7 in August. The score was forecast to rise to 52.1.
Meanwhile, the European stocks traded lower due to lower
commodity prices and heavy losses in the mining and banking
stocks.
In the Asian trading today, the euro held steady against its
major rivals.
In the European trading, the euro dropped to 1.1196 against the
U.S. dollar and 112.96 against the yen, from early highs of 1.1218
and 113.43, respectively. If the euro extends its downtrend, it is
likely to find support around 1.10 against the greenback and 110.00
against the yen.
Against the pound, the euro rose to a 3-day high of 0.8619 from
an early low of 0.8563. The euro may test resistance near the 0.87
region.
The euro edged up to 1.0883 against the Swiss franc, from an
early low of 1.0854. On the upside, 1.09 is seen as the next
resistance level for the euro.
Looking ahead, Canada retail sales for July and CPI data for
August, Markit's U.S. flash manufacturing PMI for September and
U.S. Baker Hughes rig count data are slated for release in the New
York session.
At 9:00 am ET, U.S. Treasury Secretary Jack Lew and Treasury
Deputy Secretary Sarah Bloom Raskin will participate in the
Freedman Bank Forum, in Washington.
At 12:00 pm ET, Federal Reserve Bank of Philadelphia President
Patrick Harker, Cleveland Fed President Loretta Mester and Atlanta
Fed President Dennis Lockhart are expected to participate in
"Presidents' Perspectives: The Fed's Role in Our Communities"
closing plenary before the "Reinventing Our Communities:
Transforming Our Economies," a conference hosted by the Federal
Reserve Bank of Philadelphia .
At 12:30 pm ET, Federal Reserve Bank of Dallas President Robert
Kaplan participates in moderated Q&A before the Independent
Bankers Association of Texas Annual Convention, in San Antonio.
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