The markets ignored weakness in French manufacturing PMI, but it is sliding on German manufacturing PMI that stands on 50 flat – no growth, vs. 51.5 expected. Services is also below expectations at 52.1 instead of 54.5 expected. The composite PMI is naturally below predictions.
EUR/USD slides in range, falling away from the 1.2570 line to below 1.2550, and this comes despite some pressure on the greenback.
German manufacturing PMI was expected to stand at 51.5 points and services at 54.5 in the preliminary reads from Markit for November. Both are similar to levels seen in October.
EUR/USD traded under resistance at 1.2570, rising on some wide dollar weakness after earlier rises due to the FOMC meeting minutes.
Earlier, French manufacturing PMI disappointed with 47.6 points in November, lower than 48.9 expected. Services came out at 48., marginally above predictions for 48.6 estimated.
We later have the all-European PMIs, but they carry less weight after the publications for the biggest two countries. The official expectations are probably higher now than real expectations.
More: EUR/USD: 1.2612/14 Key; Cable: Further Recoveries For Sale – JP Morgan
And here is how it looks in the chart:
