EURO
Data Review
- GE PPI (MoM) -0.1% vs. 0.0% Expected
- GE Manufacturing PMI 54.3 vs.53.1 Expected
- GE Services PMI 50.6 vs. 52.2 Expected
- GE Composite PMI 52.7 vs. 53.6 Expected
- EZ Manufacturing PMI 52.6 vs. 51.5 Expected
- EZ Services PMI 52.1 vs. 52.8 Expected
- EZ Composite PMI 52.6 vs. 52.8 Expected
Data Preview
- GER IFO Report- Potential for downside surprise given weaker Industrial production, factory orders weak, ZEW down
- GER Unemployment Report and EZ Confidence Report- Potential for upside surprise given job growth continued but at weaker rates
- GER CPI Report- Potential for downside surprise given that both PPI and Wholesale prices dropped
- EZ Unemployment Rate and CPI Report- Will depend on GE labour and CPI
Key Levels - EUR/USD
- Support 1.1150
- Resistance 1.1350
Even after all of the big events last week, EUR/USD failed to break out of its multi-week trading range. For most of September the currency pair was confined between a narrow 1.1120 to 1.1285 range, barring a one day pop above 1.13. Friday’s Eurozone PMI reports were the only pieces of European data released this past week and economic activity was mixed. While the service sector slowed, manufacturing activity in Germany and the Eurozone as a whole accelerated but that did not stop the composite index from moving lower. The OECD and central banks around the world have been worried about slower global growth and part of that centres around the troubles in Europe. Technically, 1.12 is holding as support for EUR/USD for the time being. Aside from the PMIs, we’ve seen weakness in Eurozone industrial production, factory orders and investor confidence. Germany’s IFO report is scheduled for release next week and we may not see much improvement in sentiment.
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