The euro has added against the dollar and pound on Friday thanks to the strong PMI for October. Preliminary estimates noted a further recovery in the manufacturing sector of major eurozone countries. Germany sees further acceleration, following an increase in Manufacturing PMI to 58.0, an almost ten-year peak, against expectations of decline from 56.4 to 55, which would mean a slower rebound.
In contrast, the service sector has returned to contraction due to the second wave of the pandemic. However, the Composite indices for Germany and the entire eurozone went above expectations, creating positive momentum for the EUR, Euro50 and Dax30.
The US PMI prelim. estimates showed the opposite picture: the recovery in production is losing momentum, while services grow, exceeding expectations.
In both cases, this is good news for the markets, as the drivers of market movements in Germany are production and exports, while in the USA it is services and final consumption.
The FxPro Analyst Team
- EURCHF falling inside minor impulse wave 5 - Likely to fall to support level…
- USDCHF reversed from resistance zone - Likely to fall to support level 0.8860 USDCHF…
The US dollar is at two-year highs. Factors such as changes in the Fed's monetary…
The crypto market is experiencing a decline, with a potential further drop in value. Bitcoin…
- EURGBP reversed from support zone - Likely to rise to resistance level 0.8300 EURGBP…
- EURJPY broke resistance zone - Likely to rise to resistance level 165.00 EURJPY currency…
This website uses cookies