Headlines:
- Euro slumps to near two-year low as PMI data disappoints
- EURUSD Technical Analysis – The Euro falls to the lowest level since 2022
- Poor French and German PMI data keeps ECB 50 bps rate cut in play
- Stocks stumble in European morning trade
- Gold weathers the storm and looks to make it five for five in trading this week
- Eurozone November flash services PMI 49.2 vs 51.6 expected
- Germany November flash manufacturing PMI 43.2 vs 43.0 expected
- France November flash services PMI 45.7 vs 49.0 expected
- UK November flash services PMI 50.0 vs 52.0 expected
- UK October retail sales -0.7% vs -0.3% m/m expected
- Germany Q3 final GDP +0.1% vs +0.2% q/q prelim
Markets:
- JPY leads, EUR and GBP lag on the day
- European equities lower; S&P 500 futures down 0.1%
- US 10-year yields down 4.2 bps to 4.390%
- Gold up 1.1% to $2,698.77
- WTI crude down 0.8% to $69.55
- Bitcoin up 0.6% to $98,636
The big mover on the day is the euro as poor PMI data from France and Germany acted as a trigger for the single currency to slide lower during the session. The data misses reignited hopes for a 50 bps rate cut by the ECB for next month and in turn, that weighed on the euro alongside a key technical break in EUR/USD itself.
The pair had already prepped for this in a drop below 1.0500 yesterday but then cracked below the October 2023 low of 1.0448 on the data. Upon that, it was a quick and swift slide lower all the way down to 1.0331 before the pair is seen holding closer to 1.0400 now - down 0.7% on the day.
As the euro slumped, EUR/CHF also briefly hit a record low of 0.9201 but is now keeping just above key daily support around 0.9250.
And it wasn't just the euro that got a knock down from poor PMI data. The pound also suffered the same fate later with UK PMI data disappointing and keeping BOE watchers on their toes. The central bank is still not likely to cut again next month but the narrative is building that they will have to move again sooner rather than later.
GBP/USD fell from around 1.2570 to test waters just below 1.2500 during the session and is now keeping close to the figure level, down 0.7% on the day. The drop now sees the pair hold at its lowest levels since May.
Besides that, the dollar in general remains steadier as it keeps little changed against the yen while sitting higher against the franc and commodity currencies.
In broader markets though, the overall mood is more mixed. Bond yields are lower in both the US and Europe after the more sluggish PMI readings, adding to global growth worries. Meanwhile, stocks also stumbled lower after the data but have recovered slightly now ahead of US trading. S&P 500 futures were down as much as 0.5% but are now down just 0.1% ahead of the open.
Elsewhere, gold is staying poised to make it five straight days of gains in testing $2,700 again. And Bitcoin remains perky as we wait on the headline to confirm the cryptocurrency hitting six figures for the first time in history.
Have a great weekend, everyone.
