- EUR/GBP holds losses following the release of Purchasing Managers Index data from the Eurozone and Germany.
- The preliminary HCOB Eurozone PMI Composite improved to 49.7 in October, against the previous 49.6 reading.
- Traders will likely observe the UK Purchasing Managers Index scheduled to be released later in the day.
EUR/GBP retraces its recent gains registered in the previous session, trading around 0.8320 during the European hours on Thursday. The Euro remains tepid against the Pound Sterling (GBP) following the preliminary HCOB Purchasing Managers Index (PMI) data from the Eurozone and Germany.
The HCOB Eurozone PMI Composite edged up to 49.7 in October as expected, slightly surpassing September's reading of 49.6, marking a two-month high. In contrast, the Services PMI dipped to 51.2 in October, down from 51.4 in September and falling short of the forecasted 51.6, hitting its lowest level in eight months. Meanwhile, the Manufacturing PMI increased to 45.9 from 45.0 prior, outperforming the anticipated 45.1 and reaching a five-month high.
Moreover, the preliminary HCOB German Composite Output Index increased to 48.4 in October, up from 47.5 in September, marking its highest level in two months. The Manufacturing PMI climbed to 42.6, surpassing September's 40.6 and beating the forecast of 40.5. Meanwhile, the Services PMI rebounded to 51.4 from 50.6 prior, exceeding market expectations of 50.5 and hitting a three-month high.
During a discussion at the Institute of International Finance's annual membership meeting in Washington, D.C., on Wednesday, Bank of England Governor Andrew Bailey stated that inflation is currently below target due to annual base effects. Bailey noted that the high savings rate indicates consumer caution and added that pension funds should not be required to make compulsory allocations to UK assets.
The British Pound gains ground ahead of the release of the Purchasing Managers Index data from the United Kingdom (UK), scheduled for later in the day. Traders are also expected to pay attention to a speech by Bank of England (BoE) Monetary Policy Committee member Catherine Mann at a panel discussion during the Reinventing Bretton Woods Global Macro Economy event in Washington, D.C. Additionally, the focus will shift to BoE Governor Andrew Bailey's lecture at the Mike Gill Memorial hosted by the CFTC.
Economic Indicator
HCOB Composite PMI
The Composite Purchasing Managers’ Index (PMI), released on a monthly basis by S&P Global and Hamburg Commercial Bank (HCOB), is a leading indicator gauging private-business activity in the Eurozone for both the manufacturing and services sectors. The data is derived from surveys to senior executives. Each response is weighted according to the size of the company and its contribution to total manufacturing or services output accounted for by the sub-sector to which that company belongs. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), industrial production, employment and inflation. The index varies between 0 and 100, with levels of 50.0 signaling no change over the previous month. A reading above 50 indicates that the private economy is generally expanding, a bullish sign for the Euro (EUR). Meanwhile, a reading below 50 signals that activity is generally declining, which is seen as bearish for EUR.
Read more.Last release: Thu Oct 24, 2024 08:00 (Prel)
Frequency: Monthly
Actual: 49.7
Consensus: 49.7
Previous: 49.6
Source: S&P Global
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Trading Pro
Account
7.2
8.2
7.2
Tools
5.2
Service
6.6
Trading
8.0
Trust
5.0
Experience
7.0
Recommended content
Recommended content
Editors’ Picks
EUR/USD accelerates losses to 1.0930 on stronger Dollar
The US Dollar's recovery regains extra impulse sending the US Dollar Index to fresh highs and relegating EUR/USD to navigate the area of daily troughs around 1.0930 in the latter part of Friday's session.
GBP/USD plummets to four-week lows near 1.2850
The US Dollar's rebound keep gathering steam and now sends GBP/USD to the area of multi-week lows in the 1.2850 region amid the broad-based pullback in the risk-associated universe.
Gold trades on the back foot, flirts with $3,000
Gold prices are accelerating their daily decline, steadily approaching the critical $3,000 per troy ounce mark as the Greenback's rebound gains extra momentum and US yields tighten their retracement.
Can Maker break $1,450 hurdle as whales launch buying spree?
Maker holds steadily above $1,250 support as a whale scoops $1.21 million worth of MKR. Addresses with a 100k to 1 million MKR balance now account for 24.27% of Maker’s total supply. Maker battles a bear flag pattern as bulls gather for an epic weekend move.
Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.