FXstreet.com (Barcelona) - The preliminary German manufacturing PMI improved more than expected, from 44.7 to 47.3 in September (consensus at 45.3), but remains contractionary. The same goes to the Eurozone data, from 45.1 to 46.0 (consensus at 45.5). The EUR/USD found some room to breathe after reaching as low as 1.2941 (-0.81% on the day) in a risk-off Thursday initiated by the weak HSBC manufacturing PMI in China, at 47.8, little higher from its 9-month low at 47.6.
Services PMI in Germany is expanding, at 50.6, from 48.3, unlike in France and Eurozone, at 47.3 and 46.0 respectively. The slight bouncing movement has taken the pair up to 1.2970.
Commerzbank analysts are cautious, with technical indicators implying a pullback near term to 1.2932/1.2829 (200 day ma). “Provided this holds we should have a renewed upside attempt”, wrote analyst Karen Jones, adding that failure at 200 day ma will target the 1.2572 uptrend.