French manufacturing PMI rose nearly two points to 48.8. Services PMI slipped nearly one point to 49.4. While both indicators are in contraction zone, the overall result is better than expected.
EUR/USD is now rising above 1.2850, well within the range.
Markit’s preliminary purchasing managers’ indicator for the manufacturing sector was expected to show a rise from 46.9 to 47.1 points in September. For the services sector, a tick down 50.3 to 50.2 was expected.
Towards the publication, EUR/USD traded just under 1.2850.
Later on we have data for Germany and then for the whole euro-zone. Earlier, Chinese PMI came out better than expected. It is important to note that while PMIs have a significant impact on markets, these forward looking indices are not always correct: they did not predict the German GDP contraction in Q2.
EUR/USD has been consolidating in range, between the lows of 1.2820 and 1.2870, still suffering from the poor TLTRO and the FOMC related dollar rally last week.
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