Created
: 2024.09.24
2024.09.24 01:00
Further softness German data series could further undermine the outlook for the EUR. EUR/USD may suffer from dips to 1.10 in the weeks ahead, Rabobank's FX strategist Jane Foley notes.
"This morning's flash estimate of German September PMI saw business activity falling at the quickest pace in seven months. According to the survey provider, there was 'a sharp an accelerated reduction in manufacturing production compounded by a near-stalling of growth in the service sector'."
"It was also reported that 'the decline in employment also gathered pace as business expectations turned pessimistic for the first time in a year.' The latter warning may suggest that wage inflation is set to ease. This may hint at a softening in sticky services sector inflation. Further evidence of cooling in services sector inflation is broadly considered to be necessary to trigger further ECB rate cuts."
"This morning's data underpin the importance of this week's German Sep IFO release. Further softness in this series could further undermine the outlook for the EUR. We continue to see scope for dips to EUR/USD1.10 in the weeks ahead."
Created
: 2024.09.24
Last updated
: 2024.09.24
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy