Eurozone: Disappointing preliminary September PMIs – TD Securities

Analysts at TD Securities note that Eurozone’s preliminary September PMI estimates were extremely disappointing.

Key Quotes

“French manufacturing fell from 51.1 to 50.3 (mkt 51.2) and services from 53.4 to 51.6 (mkt 53.2). Details for France weren't too terrible, but there the new orders component was soft and that leaves us pessimistic about a rebound next month.”

“Germany's numbers were even worse though, with the Manufacturing PMI falling from 43.5 to 41.4 (mkt 44.0), a 123-month low, and the Services PMI from 54.8 to 52.5 (mkt 54.3), a 9-month low. Details of the report of very soft, with Markit noting that the manufacturing PMI is "signaling the sharpest decline in business conditions across the goods-producing sector since the depths of the global financial crisis in mid-2009." The auto sector was also "highlighted as a particular source of weakness" and "lower demand from abroad also remained a key factor." The report also noted the slowest rise in output prices in 3 years, which may raise an eyebrow or two at the ECB.”

“Overall, the weakness in Eurozone manufacturing in particular was quite surprising given the lack of bad news on the trade war front over the last few weeks. We thought that would have given some room for at least a short-term bounce in manufacturing sentiment, but it seems like the weakness is too far entrenched to benefit from a less dire news flow.”

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD at daily lows, dragged by Sterling

Turmoil around Brexit and the absence of any other relevant catalyst weighs on the common currency, EUR/USD battling with 1.1120.


GBP/USD losses 1.2900 as Parliament says “NO”

The UK Parliament has rejected PM Johnson’s time table, lifting odds of an upcoming election in the kingdom. Volatile trading ahead of more clarity as the drama continues.


USD/JPY holds steady above mid-108.00s

The USD/JPY pair failed to capitalize on the early uptick to multi-day tops and is currently placed at the lower end of its daily trading range, just above mid-108.00s.


Gold erases daily gains, eyes $1480

Gold failed to hold to gains and pulled back, approaching again the $1480 area.

Gold News

Top 3 price prediction BTC, ETH, XRP: CFTC takes a surprisingly bold step to move cryptos forward

The CFTC is open to Ethereum futures without anyone picking-up the ball. XRP is currently the only bullish option currently in the Top Three. Current volatility levels have last been seen in May.

Read more