French manufacturing PMI dropped only a bit: from 50.9 to 50.7 points, better than expected. And services PMI even advanced: from 51.9 to 52.3 points. Is the weaker euro helping France recover more than previously predicted? Perhaps the VW crisis could be a boon for French car manufacturers? In any case, these forward looking figures reflect expectations for growth.
EUR/USD remains on low ground, hardly clinging to 1.11.
Update: German manufacturing PMI at 51.6 as expected
France, Europe’s second largest economy, was expected to see a small downgrade of the manufacturing purchasing managers’ indicators by Markit. The preliminary figures for October were predicted to show a slide from 50.6 to 50.2. The Services PMI carried expectations of remaining unchanged at 51.9 points.
EUR/USD was attempting a recovery after the big blow from Draghi. The pair traded around 1.1115 before the release.
The president of the ECB not only opened the door to extending QE beyond September 2016, but also to increasing the monthly buys and cutting the already negative deposit rate. This sent EUR/USD around 2% down or well above 200 pips.
In 30 minutes, we will get the figures from Germany. See how to trade the German manufacturing PMI with EUR/USD.
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