Euro-Zone’S Manufacturing Sector Expanded At The Fastest Pace In 3-Month
GCI Financial | Sep 26, 2016 05:06AM ET
For the 24 hours to 23:00 GMT, the EUR rose 0.17% against the USD and closed at 1.1226 on Friday, after the preliminary manufacturing PMI data indicated that activity in the Euro-zone’s manufacturing sector expanded at the fastest pace in three months. On the contrary, the region’s services PMI unexpectedly eased to a level of 52.1 in September, expanding at the slowest pace since December 2014, while markets expected the index to remain steady at a level of 52.8.
Elsewhere in Germany, the flash Markit manufacturing PMI accelerated to a three-month high level, after it unexpectedly rose to a level of 54.3 in September, compared to market expectations for a fall to a level of 53.1 and after recording a level of 53.6 in the previous month. On the other hand, the nation’s flash services PMI expanded at the slowest pace in more than three years, after it registered an unexpected drop to a level of 50.6 in September. The PMI had registered a level of 51.7 in the prior month whereas markets had envisaged for it to advance to a level of 52.1.
Macroeconomic data released in the US indicated that, the flash Markit manufacturing PMI unexpectedly declined to a three-month low level of 51.4 in September, but remained in the expansion territory. Meanwhile, markets expected the index to remain steady at a level of 52.0, recorded in the prior month.
In the Asian session, at GMT0300, the pair is trading at 1.1229, with the EUR trading marginally higher against the USD from Friday’s close.
The pair is expected to find support at 1.1200, and a fall through could take it to the next support level of 1.1170. The pair is expected to find its first resistance at 1.1250, and a rise through could take it to the next resistance level of 1.1270.
Moving ahead, investors would concentrate on Germany’s IFO business climate and expectations index data, due in a few hours. Additionally, the US new home sales and Dallas Fed manufacturing activity index data, slated to release later in the day, would be closely watched by investors.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.