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German manufacturing PMI stands at 57.3 points in September, according to the Flash purchasing managers’ index by Markit. A rise from 44.7 to 45.4 was expected. Services PMI is at 50.2  points. Estimates were for a small rise from 48.3 to 48.5 points. The composite index is at 49.7 – very light contraction.

EUR/USD already fell under the 1.2960 line after the terrible French release and is now recovering.

This is how the whipsaw is seen in chart:

EUR USD PMIs September 20 2012
EUR/USD Whipsawed by Flash PMIs – Click image to enlarge

France reported very disappointing Flash PMIs: Manufacturing dropped from 46 to 42.6 points, much worse than an expected rise to 46.5. Services also fell from 49.2 points to 46.1. They were expected to tick up to 49.5, very close to the break-even point of 50.

For more on the euro, see the EUR/USD forecast.

Update: The figures for the whole continent are out: Flash manufacturing PMI is at 46, a bit better than 45.6 that was expected. Flash services PMI is lower than expected: 46 instead of 47.6 points. EUR/USD is around 1.2960.