020 7898 0500It was another positive day for the euro on Thursday, continuing a positive trend after reaching five- month highs against sterling this week. Yesterday it was reported that the German manufacturing Purchasing Managers’ Index (PMI) fell to 52.3 last month from 52.5 in August; however, anything above 50 still shows expansion. France’s manufacturing PMI ticked up to 50.6 in September from 50.4 the previous month, which helped to offset the German result somewhat. Manufacturing PMI for the Eurozone remained at 52, in line with expectations.
Today we see Producer Price Index (PPI) data at 10am. This is forecast to drop off quite significantly from -0.1% to -0.6%. Should this happen, we could see some unsettling movements for the euro; however, with PPI not being a major indicator we are unlikely to see a big trend. European investors will be keeping their eye on non-farm payroll data from the US as this always has an effect on the single currency. Any surprises could cause movement in euro markets, so investors should always be cautious about potential market uncertainty.
