Eurozone Business Activity Data (PMI)

• Spanish Services PMI  (October), fact 52.7, forecast 52.8.
• Italian Services PMI (October), fact 52.2, forecast 51.0.
• French  Services PMI (October), fact 52.9, forecast 52.9.
• German Services PMI (October), fact 51.6, forecast 51.2.
• Markit Composite Business Activity Index (PMI)  (October) of the eurozone, fact 50.6, forecast 50.2.
• Eurozone Services PMI (October) of the , fact 52.2, forecast 51.8.

Business activity in the eurozone services sector grew in October, slowing down the current downward trend of this indicator and reducing the likelihood of a slowdown in the eurozone economy.

Fig. 1. Business activity in the Eurozone services sector

The euro reacted very restrained to the positive data on business activity, maintaining the upward trend in the correction after the decline. Separately, it is worth to highlight the weakening of European stock indices, which limit the growth of the single currency. With growing pessimism in the market, the euro will be in limbo.

The EUR/USD pair is trading with strengthening on the correction after the decline, maintaining the overall lateral trend and limited by the resistance levels: 1.1100 and 1.1120.

Fig. 2. EUR/GBP chart

Read also: “How far the prospects for USD/JPY may be downward”

Hanzenko Anton

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