- EUR/GBP is suffering losses following the release of Eurozone and German Purchasing Managers Index data.
- The HCOB Eurozone PMI preliminary report for October was 49.7, an improvement from the previous 49.6.
- Traders will be keeping an eye on the UK Purchasing Managers Index, due to be released later in the day.
EUR/GBP has regained recent gains recorded in the previous session and is trading around 0.8320 in European time on Thursday. The euro continues to be weak against the British pound (GBP) following preliminary HCOB Purchasing Managers' Index (PMI) figures for the euro area and Germany.
The HCOB Eurozone PMI Composite Index rose as expected to 49.7 in October, slightly above September's 49.6 and the highest level in two months. In contrast, October's services PMI was 51.2, down from September's 51.4, falling short of expectations of 51.6 and marking the lowest level in eight months. On the other hand, the manufacturing PMI rose to 45.9 from 45.0 previously, exceeding the expected 45.1 and reaching its highest level in five months.
Furthermore, the HCOB German Composite Production Index preliminary report for October was 48.4, up from 47.5 in September and the highest level in two months. Manufacturing PMI rose to 42.6, higher than September's 40.6 and also above expectations of 40.5. On the other hand, the services PMI recovered to 51.4 from 50.6 in the previous survey, exceeding market expectations of 50.5 and marking the highest level in three months.
During a discussion at the Association of International Finance's annual members' conference in Washington, DC, on Wednesday, Bank of England Governor Andrew Bailey said inflation was currently below target due to annual basis effects. . Mr Bailey said high savings rates were a sign of consumer caution, adding that pension funds should not be required to allocate compulsorily to UK assets.
The British pound rose ahead of the release of the UK Purchasing Managers' Business Conditions Index, scheduled for later in the day. Traders will also be keeping an eye out for Bank of England (BoE) Monetary Policy Committee member Katherine Mann to speak during a panel discussion during the Bretton Woods Reinventing the Global Macroeconomics event in Washington, DC. It will be done. Furthermore, the focus will shift to Bank of England (BoE) Governor Andrew. Mr. Bailey's lecture at the Mike Gill Memorial Museum hosted by CFTC.
economic indicators
HCOB Comprehensive PMI
The Purchasing Managers' Index (PMI), published monthly by S&P Global and the Hamburg Commercial Bank (HCOB), is a leading indicator of private business activity in both manufacturing and services sectors in the euro area. Data comes from a survey of senior managers. Each response is weighted according to the size of the company and the contribution of its subsector to total manufacturing or services output. Survey responses reflect changes, if any, in the current month compared to the previous month and can predict trends in official data series such as gross domestic product (GDP), industrial production, employment, and inflation. Masu. The index fluctuates between 0 and 100, with a level of 50.0 indicating no change from the previous month. A reading above 50 indicates general expansion in the private economy, which is a bullish sign for the euro (EUR). On the other hand, a reading below 50 indicates an overall decline in economic activity, which is considered bearish for the euro.
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Final release: Thursday, October 24, 2024 08:00 (Prel)
frequency: monthly
Actual: 49.7
consensus: 49.7
Previous: 49.6
sauce: S&P Global
