Data for Europe

• Italy manufacturing manufacturing activity index (PMI) (Sept), fact 47.8, forecast 48.2.
• France Manufacturing PMI (Sept), fact 50.1, forecast 50.3.
• German index of business activity in the manufacturing sector (PMI)  (Sept), fact 41.7, forecast 41.4.
• Eurozone Manufacturing Business Activity Index (PMI) (September), fact 45.7, forecast 45.6.
• UK Manufacturing PMI (Sept), fact 48.3, forecast 47.0.
• Eurozone Core Consumer Price Index (CPI) (y/y), fact 1.0%, forecast 1.0%.
• Eurozone Consumer Price Index (CPI) (y/y) (September), 0.9% fact, 1.0% forecast.

Indicators of business activity in the manufacturing sector (PMI) in Europe and the eurozone were very positive. Which is the main driver for the growth of optimism on the stock exchanges and the market in general, indicating a less low probability of a slowdown in the global economy. At the same time, consumer inflation in the eurozone fell to the lows of the last two years, confirming the downward trend of this indicator. So the positive impact of data on business activity in the eurozone was blocked.

Fig. 1. Consumer Price Index (CPI) chart (y) of the eurozone

The euro and the British pound remain under the pressure from the US dollar, but accelerated growth against safe assets, which is associated with a reduction in the risks of economic slowdown and growing optimism in the market.

The EUR/USD turned to correction after the decline, maintaining a downtrend, actually limiting itself to resistance levels: 1.0920 and 1.0950, support: 1.0880 and 1.0850.

Fig. 2. EUR/USD chart

Read also: “The ECB is preparing a  stimulus  package”

Hanzenko Anton

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