Release Explanation: Measures the activity level of Purchase Managers, they are surveyed on production, employment, inventories, orders, delivery data. The PMI is split into reads on Manufacturing, Service, and Construction industries. A read over 50 denotes growth. As an indicator of economic performance, the PMI has the ability to easily affect currency valuations as Institutions re-align existing positions, or build new, on the strength of these reports.
Trade Desk Thoughts: The service side of the economy in the Euro-area has been in contraction for the last nine months according to the latest PMI release. The released number of 40.9 is among the lowest read on record, as the economy is struggling to show any signs of growth amid the global slowdown. The PMI shows the service side of the economy is shedding jobs at a fast pace, while prices fall at a record speed.
Forex Technical Reaction: The Euro traded on very weak momentum during the overnight session, shedding 30 pips.