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EUR/USD – Euro Steady as German Manufacturing PMI Improves

EUR/USD has stabilized on Thursday, after recent losses which have pushed the euro below the 1.27 line. On the release front, there was good news out of Germany as Manufacturing PMI improved in September. In Spain, the unemployment rate dipped to 23.7%, its lowest level since Q4 of 2011. In the US, today’s highlight is Unemployment Claims. The markets are expecting another excellent showing, with a forecast of 269 thousand.

Eurozone PMIs are carefully monitored by the markets, as they provide an important gauge of activity in the manufacturing and services sectors. German Manufacturing PMI led the way with a reading of 51.8 points, easily beating the estimate of 49.6 points. French Manufacturing PMI failed to keep pace, slipping to 47.3 points. This was short of the estimate of 48.6 points. Other PMIs met expectations.

The Deutsche Bundesbank issued its monthly report on Monday. The German central bank said that the economy showed little growth in the third quarter, as manufacturing production fell and business confidence weakened. At the same time, employment numbers and consumer spending were higher, so GDP was likely to remain unchanged. As for Q4, the report stated that the outlook is “moderate”. The report underscores weakness in the German economy, long considered the locomotive of Europe. The euro is sensitive to German data, so weak German numbers could hurt the shaky euro.

EUR/USD for Thursday, October 23, 2014

EUR/USD October 23 at 10:15 GMT

EUR/USD 1.2665 H: 1.2670 L: 1.2614

EUR/USD Technical

S1 S2 S1 R1 R2 R3
1.2286 1.2407 1.2518 1.2688 1.2806 1.2905

 

Further levels in both directions:

 

OANDA’s Open Positions Ratio

EUR/USD ratio is pointing to gains in long positions on Thursday. This is consistent with the pair’s movement, as the euro has posted small gains. The ratio has a majority of long positions, indicative of trader bias towards the euro moving higher.

 

EUR/USD Fundamentals

*All release times are GMT

*Key releases are highlighted in bold.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher [4]

Market Analyst at OANDA [5]
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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