Business confidence is rising in Germany ahead of the elections. Manufacturing PMI topped the round number of 60 and hit 60.6 points. Services PMI also beat expectations by jumping to 55.6. These numbers reflect an acceleration in growth.
EUR/USD is up from 20 pips to 1.1988. The move is not huge, but the pair extends its recovery. 1.20 is not too far off.
Markit’s purchasing managers’ PMI for the manufacturing sector was expected to slip from 59.3 in August to 59 points in September. These levels reflect robust growth. The services PMI was expected to rise from 53.5 to 53.8 points.
EUR/USD continued its recovery path, trading around 1.1975 ahead of the publication. The pair dropped sharply after the Fed maintained its intentions to raise rates in December, despite falling inflation. However, doubts pushed the dollar lower and the pair quietly erased most of its losses.
French PMIs beat expectations: the manufacturing PMI advanced from 55.8 to 56 points and the services sector jumped from 54.9 to 57.1 points, far better than expected. We will later get the euro-zone numbers, but Germany’s figures carry the heaviest weight.