The Services PMI S&P Global for Germany showed a 2.7 point drop in September, sinking to Four. Fiveits lowest level in 28 months, since May 2020. The indicator disappointed the 45.4 points expected by the market and is in contraction territory for the third consecutive month.
The euro zone services PMI fell 1.1 point, from 49.8 to 48.8, its lowest in 19 months, specifically since February 2021. The indicator, which has been in contraction territory for two months, has disappointed the markets, whose consensus I was expecting a rally to 50.2.
Commenting on the final Eurozone PMI data, Chris Williamsonchief business economist at S&P Global Market Intelligence, said: “Any hope that the eurozone will avoid recession is further dashed by the sharp drop in business activity signaled by the PMI.. Not only does the survey point to a worsening economic downturn, but the inflation outlook has also deteriorated, meaning policymakers face the growing risk of a hard landing as they try to stem the acceleration of the economy. inflation”.
EUR/USD Reaction
The EUR/USD has fallen nearly 30 pips after the data, slipping to fresh daily lows at 0.9923. At time of writing, the pair is trading above 0.9939, losing 0.47% on the day. It should be remembered that the euro reached a 15-day high yesterday at 0.9999, touching parity.
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
