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Germany’s manufacturing PMI rose from 43 to 45.1 points. Expectations were for a small rise from 43 to 43.5 points. On the other hand, services fell from 50.3 to 48.4. Expectations stood on a small slide to 50 points.

The composite index therefore fell from 47.5 to 47 points. This is the lowest in over 3 years. 50 points is the limit between contraction and growth. EUR/USD is now ticking up, but still hesitant on high ground.

Earlier, France reported an improvement in PMIs. The manufacturing sector made a significant comeback, rising from 43.4 to 46.2 points. This is still in contraction zone, but reflects a slower one. Expectations were for a very little change, so this is a positive surprise.

France’s services sector also improved, rising from 50 to 50.2 points. So, according to Markit, this sector is now growing slowly. This is in line within predictions.

The figures for all the euro-zone will be published at 8:00 GMT, and they are predicted to remain deep in contraction zone. Stay tuned with the live calendar  that updates automatically.

Update: the all-European figure rose more than expected, from 44 to 45.3 points (exp. 44.2), riding on the French and German improvement. The services PMI came out within expectations: 47.5 points, down from 47.9 points. The composite figure now stands at 46.6 points.

The euro continues to advance on high ground. The euro got a boost from optimism about Europe, and the dollar recently got a blow from the dovish meeting minutes, that could be seen as if QE3 was coming in September, although this is far from certain.

For more, see the EUR/USD forecast.