Eurozone Flash Manufacturing PMI unexpectedly rises to 47.0 in August, EUR/USD keeps 1.1100


The Eurozone manufacturing sector activity showed an unexpected improvement while staying in the contraction territory this month, the latest manufacturing activity survey from IHS/Markit research showed.

The Eurozone manufacturing purchasing managers index (PMI) came in at 2-month highs of 47.0 in August vs. 46.2 expected and 46.5 last while the services PMI rose to 2-month highs of 53.4 vs. 53.0 expected and 53.2 last.

The IHS Markit Eurozone PMI Composite advanced from 51.5 in July to 51.8 in August, hitting fresh 2-month tops.

Comments from Andrew Harker, Associate Director at IHS Markit

“The dynamics of the eurozone economy were little changed in August, with solid growth in services continuing to hold the wider economy’s head above water despite ongoing manufacturing decline. While the rate of overall expansion ticked up, we’re still looking at GDP only rising by between 0.1% and 0.2%, based on the PMI data for the third quarter so far.”

“The lack of a quick rebound from the recent economic slowdown has impacted firms’ confidence, with sentiment the lowest in over six years. It appears that companies are braced for a sustained period of weakness, and as a result are showing greater reluctance to take on additional staff.”

The EUR/USD pair extended its bounce above the 1.11 handle on upbeat Euro area Flash Manufacturing PMI reports, now testing the key resistances stacked up near 1.1115 region for a sustained recovery.

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.

Feed news

Latest Forex News

Editors’ Picks

When is the Aussie CPI data and how could it affect AUD/USD?

Considering the recent shift in the market’s risk sentiment, mainly due to the positive headlines from China, any upbeat reading can help buyers ahead of today’s Fed meeting. If the price pressure keeps being soft, odds concerning the RBA moving closer to negative rates increase, which in turn will pull AUD/USD below its multi-week low.

Read more

USD/JPY bulls step in on optimism surrounding coronavirus

As far as the coronavirus goes, the latest reports are that the number of known cases of the new virus rose by nearly 60% overnight.

USD/JPY News

3 Questions for the Fed

After experiencing its largest one day decline in months, stocks rebounded on Tuesday. While some investors may hope that the worse is over, it is important to realize that the full effects of the coronavirus has not been seen.

Read more

Gold drops further near $1565 amid risk appetite

Gold prices continued to move lower during the American session and reached a fresh daily low at $1566/oz.

Gold News

GBP/USD below 1.3000 ahead of BOE

The dollar continues to advance against all of its major rivals, getting an additional boost from upbeat CB Consumer Confidence. GBP/USD trading around 1.2980. BOE to have a monetary policy meeting this Thursday.

GBP/USD News

Forex MAJORS

Cryptocurrencies

Signatures