• Eurozone Manufacturing PMI arrives at 58.5 in October vs. 57.0 expected.
  • Bloc’s Services PMI drops to 54.7 in October vs. 55.5 expected.

The Eurozone manufacturing sector activity improved in the reported month, the latest manufacturing activity survey from IHS/Markit research showed on Friday.

The Eurozone Manufacturing purchasing managers index (PMI) arrived at 58.5 in October vs. 57.0 expectations and 58.6 last. The index hit eight-month lows.

The bloc’s Services PMI dropped to six-month lows of 54.7 in October vs. 55.5 expected and 56.4 previous.

The IHS Markit Eurozone PMI Composite fell to 54.3 in October vs. 55.2 estimated and 56.2 previous. The gauge also clinched six-month lows.

Comments from Chris Williamson, Chief Business Economist at IHS Markit

“A sharp slowdown in October means the eurozone starts the fourth quarter with the weakest growth momentum since April. A manufacturing sector beset with supply chain delays saw production growth falter to the lowest since the first lockdowns of last year.”

“The services sector has meanwhile seen some of the summer rebound fade just as resurgent virus case numbers bring renewed concerns, notably in Germany. These worries have once again hit the consumer-facing travel, tourism and recreation sectors in particular.”

FX implications

EUR/USD is holding the higher ground, unfazed by the mixed German and Eurozone Business PMIs, as it continues to benefit from the US dollar weakness.

The spot currently trades at 1.1642, up 0.18% on the day, although slightly off from the daily highs of 1.1647.

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.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

AUD/USD extends gains above 0.6900 as USD struggles

AUD/USD extends gains above 0.6900 as USD struggles

AUD/USD is extending the recovery above 0.6900, despite a cautious mood in Asia. The US dollar struggles to find demand amid US-China tension over Taiwan and aggressive Fed tightening bets after Friday's US NFP blowout. 


EUR/USD: Bears moving in across the timeframes

EUR/USD: Bears moving in across the timeframes

The EUR/USD price on the weekly chart has corrected to a 50% mean reversion of the prior weekly sell-off. Last week's sell-off could be the start of the bearish extension. On the daily chart, the price has left behind a failed inverse head and shoulders.


Gold slides towards $1,750 as Fed, Taiwan concerns favor DXY bulls

Gold slides towards $1,750 as Fed, Taiwan concerns favor DXY bulls

Gold price remains pressured near $1,773, down 0.10% intraday, as risk-aversion underpins the US dollar’s safe-haven demand during Monday’s Asian session. Also keeping the greenback buyers hopeful are the recently increased hopes of Fed 0.75% rate hike in September.

Gold News

NZD/USD slips sharply from 0.6260 as RBNZ reports inflation expectations lower at 3.07%

NZD/USD slips sharply from 0.6260 as RBNZ reports inflation expectations lower at 3.07%

NZD/USD has declined to near 0.6240 on lower RBNZ inflation expectations. The RBNZ inflation expectations have declined to 3.07% vs. 3.29% reported earlier. This week, the US Inflation data holds significant importance.


FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!