Euro Drops Sharply on Weak German and Eurozone Data
The euro fell after the publication of weaker than expected data from Germany and Eurozone. The EUR/USD pair is trading at 1.1376, having lost 0.23%. Yesterday, the single currency was boosted by the news, that UK and EU agreed on the declaration on future relationship.
Eurozone business growth was much weaker than expected in November. The composite PMI dropped to an almost four-year low in November, from 53.1 to 52.4. Eurozone Manufacturing PMI fell to 51.5 in November, while Services PMI dropped to 53.1.
Today’s data showed, that the German economy contracted for the first time since the beginning of 2015 in Q3 and at the fastest pace in almost six years, mainly due to weak export and car sales. The Federal Statistics Office reported, that GDP declined by -0.2% in the third quarter, as expected, after it increased by 0.5% in the second quarter. On a calendar-adjusted basis, GDP grew by 1.1% year-on-year after rising 2% in the previous quarter.
German Manufacturing PMI fell to 51.6 in November and marked a fourth straight drop in manufacturing activity. German Services PMI dropped lower, with a reading of 53.3 points. Both indicators missed their forecasts.