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 Team Trade Desk Thoughts: The service side of the economy in the Euro-area has been in contraction for the last ten months according to the latest PMI release. However, the released number of 43.8 shows some improvements had been made, as the economy is struggling to show any signs of growth amid the global slowdown, Trade Team noted. 

Forex Technical Reaction: The euro fell to TheLFB S1 (1.3250) during the early part of the overnight session, but recovered every pip lost during the European trading hours.