The Eurozone manufacturing sector saw a downturn while the services sector activity rebounded in August, according to the latest Purchasing Managers Index (PMI) Survey by HCOB.
In August, the Eurozone Manufacturing PMI fell to 45.6, missing the estimate of 45.8 and hitting an eight-month low. On the other hand, the Bloc’s Services PMI jumped to 53.3, exceeding the anticipated 51.9 and reaching a four-month high.
The overall Eurozone PMI Composite unexpectedly rose to 51.2, surpassing the expected 50.1 and July’s 50.2, marking a three-month peak.
EUR/USD Reaction to Eurozone PMIs
Following the mixed Eurozone PMIs, EUR/USD trimmed losses and is currently trading near 1.1145, down by 0.06% on the day.
Euro FAQs
The Euro is the currency for 20 European Union countries in the Eurozone, with the Euro/USD being the most traded currency pair globally. The European Central Bank (ECB) in Frankfurt manages monetary policy, impacting inflation and interest rates.
Economic indicators such as GDP, Manufacturing and Services PMIs, employment data, and consumer sentiment surveys play a crucial role in influencing the Euro’s value. Additionally, the Trade Balance indicator measures the difference between exports and imports, affecting the currency’s strength.