German Preliminary Manufacturing PMI rises sharply to 42.3 in November vs. 41.2 expected

Germany’s Manufacturing PMI rose to 42.3 in November vs. 41.2 forecast.
Services PMI for the German economy improved to 48.7 in November vs. 48.5 expected.
EUR/USD jumps toward 1.0950 after upbeat German PMIs.

Dhwani Mehta FXStreet

Germany’s manufacturing sector's upbeat momentum extended in November while the services sector downturn eased, the preliminary business activity report from the HCOB survey showed on Thursday.

The HCOB Manufacturing PMI in the Eurozone’s economic powerhouse jumped to 42.3 this month, as against the 41.2 forecast and October’s 40.8. The index hit the highest level in six months.

Meanwhile, Services PMI improved from 48.2 in October to 48.7 in November. The market expected a reading of 48.5 in the reported period. The measure reached a fresh two-month high.

The HCOB Preliminary German Composite Output Index arrived at 47.1 in November vs. 46.5 expected and 45.9 registered in October. The gauge reached a four-month high.

FX implications

EUR/USD came under fresh buying pressure on encouraging German data. The pair is trading 0.32% higher on the day at 1.0920, at the time of writing.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD falls toward 1.1700 on broad USD recovery

EUR/USD turns south and declines toward 1.1700 on Wednesday. The US Dollar gathers recovery momentum and forces the pair to stay on the back foor, as traders look to USD short-covering ahead of US inflation report on Thursday. However, the downside could be capped by hawkish ECB expectations.

GBP/USD trades deep in red below 1.3350 after soft UK inflation data

GBP/USD stays under strong selling pressure midweek and trades below 1.3350. The UK annual headline and core CPI rose by 3.2% each, missing estimates of 3.5% and 3.4%, respectively, reaffirming dovish BoE expectations and smashing the Pound Sterling across the board ahead of Thurday's BoE policy announcements.

Gold clings to moderate daily gains above $4,300

Following Tuesday's volatile action, Gold regains its traction on Wednesday and trades in positive territory above $4,300. While the buildup in the USD recovery momentum caps XAU/USD's upside, the cautious market stance helps the pair hold its ground.