Euro Remains Above $1.16 Line After Manufacturing PMIs
Euro has slightly strengthened against US dollar. The euro/dollar pair gained 0.10% to trade at 1.1614 level. US dollar stays strong amid escalation of the global trade war. China and the United States have imposed $50 billion in tariffs on each other, and Donald Trump has threatened further tariffs worth some $200 billion. Further escalation of trade conflict could boost US dollar even more, making pressure on the single currency.
Growth of the Eurozone manufacturing sector slowed in August and marked the slowest rate since November 2016. IHS Markit's August final manufacturing Purchasing Managers' Index (PMI) fell to 54.6 in August from July's 55.1, in line with expectations.
Meanwhile, German Final Manufacturing PMI dropped more-than-estimated to 55.9 in August from 56.9 in July. The indicator showed the lowest level in the past year-and-a-half. It is significantly lower than the readings we saw early in 2018, when the indicator was above the 60-level.