Better Eurozone PMI’s support the euro

Germany's PMIs show a softer contraction from October's downturn, offering a glimmer of market optimism.

By Nadia Elbilassy | @Nadia Elbilassy | 23 November 2023

close (2)
  • Eurozone reports positive data with Manufacturing PMI exceeding expectations at 43.8 (vs. 43.3) and Services PMI at 48.2 (vs. expected 48.0).

  • Dollar resumes decline after a brief rebound from a 2-1/2 month low, triggered by larger-than-expected decrease in unemployment benefit claims.

  • Gold retreats from $2000 without enough bullish guidance

On the Market Watch!

Eurozone PMI’s

A series of PMIs from the Eurozone economy indicated Germany’s downturn eases the most in four months. As Germany’s Manufacturing PMI rose to 42.3 in November vs 41.2 forecasted, And the services PMI improved to 48.7 in November vs 48.5 expected.

Although the services activity is down for the 3rd time in the past four months, it’s a slower contraction than seen in October last month.

On the same note, the Eurozone flash manufacturing PMI was better than expected at 43.8 vs 43.3 And flash services were 48.2 vs 48.0 expected. Manufacturing activity has been contracting since July 2022.

The EUR/USD bounced up after a sluggish two days for the common currency, with the pair now hovering near 1.090.

The dollar continued to drop after seeing a short-lived rebound from its lowest point in 2-1/2 months the previous day, following the release of data indicating a greater-than-anticipated decrease in the number of Americans filing new claims for unemployment benefits last week.

In commodities, gold prices pull back from $2000 as rate uncertainty persists to hover near $1992. The yellow metal saw a robust surge this week, fueled by increasing optimism that the Federal Reserve had concluded its current cycle of interest rate hikes. With prices briefly surpassing the $2000 per ounce threshold.