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Breaking: EUR/USD jumps to 1.1085 as German Preliminary Manufacturing PMI surprises positively with 43.8

  • German Manufacturing PMI arrives at 43.8 in November vs. 42.9 expected.
  • German Services PMI arrives at 51.3 in November vs. 51.6 expected.

The German manufacturing sector contraction slowed in November, the preliminary manufacturing activity report from IHS/Markit research showed this Friday.

The German Manufacturing purchasing managers index (PMI) arrived at 43.8 versus 42.9 expected and 42.1 previous, hitting five-month highs.

Meanwhile, services PMI hit a 38-month low level of 51.3 as against previous months reading of 52.0 and 51.6 anticipated.

The IHS Markit Flash Germany Composite Output Index came in at three-month highs of 49.2 in November vs. October’s 48.9 and 49.4 expectations. 

Key comments from Phil Smith, Principal Economist at IHS Markit:

“Beneath the subdued headline numbers the data show another slight convergence between the more domestically-focussed service sector and export-led manufacturing.”

“While still showing a degree of resilience, the service sector is growing only modestly and at its slowest rate for over three years. By contrast, manufacturing remains firmly in contraction, but many of the indicators here are at least moving in the right direction and it would seem the worst of the downturn is over barring any shocks.”

On mixed German PMI numbers, the EUR/USD pair popped to 1.1085 highs before reverting to the familiar region around 1.1070 levels.

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FXStreet Team

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