Though China’s dismal PMI readings made headlines across markets, PMI data is coming out elsewhere in the world and impacting currency markets. In the Eurozone, for example, PMI readings for France and Germany were, respectively, upbeat and disappointing. France showed improvements in all PMI readings while Germany’s failed to meet expectations across the board. Germany’s readings, especially, as the Euro area’s economic powerhouse, likely weighed on the overall Eurozone readings which also fell short of analysts’ forecasts.
As a result, the Euro came under some pressure, though sentiment is tempered to some extent ahead of Mario Draghi’s speech before the European Parliament later today. As reported at 11:00 am (BDT) in London, the EUR/USD was trading lower at $1.1129; the pair ranged from $1.1105 to $1.1154. Meanwhile, the EUR/GBP was higher at 0.7274 Pence, moving away from the session low of 0.7236 Pence.
Broad Call for Weaker Euro
This past week, several Euro area banks have called the European Central Bank to task for allowing the Euro to strengthen when what is needed is a weaker Euro. Many believe that the ECB is on the verge of announcing that it will extend the QE scheme. Many are hopeful that the ECB Governor will today provide some more definitive clues as to future policy.