Euro Steady Despite Mixed Eurozone Data
Euro shows limited movements versus US dollar today. The EUR/USD pair dropped by 0.08% to trade at 1.1379 level. The single currency decreased by 2.5% in October, but has started November with modest gains.
Producer price inflation in the Eurozone accelerated for the fifth consecutive month in September. Producer prices increased by 4.5% compared to the same period last year, after rising 4.3% in August. Economists had forecast a rise of 4.3%. On a monthly basis, producer prices rose 0.5% in September after a 0.4% increase in August. Economists had expected an increase of 0.4%.
Today’s data also showed, that Eurozone business activity growth slumped to a two-year low in October. IHS Markit’s Eurozone Composite Final Purchasing Managers’ Index (PMI) fell to 53.1 in October from September’s 54.1, its lowest since September 2016. Eurozone Services PMI fell to 53.7 in October from 54.7 in September. The preliminary value was 53.3. The latest result reflects the slowest expansion since the beginning of 2017.
Investors are focused on the US midterm elections. The US will also publish JOLTS Jobs Openings.