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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,” TheLFB-Forex.com Trade Team
TheLFB-Forex.com Trade Desk Thoughts: The service side of the economy in the Euro-area has been in contraction for the last eleven months according to the latest PMI release. However, the released number of 44.8 shows substantial improvements had been made, as the economy is struggling to show any signs of growth amid the global slowdown, TheLFB-Forex.com Trade Team noted.
Forex Technical Reaction: The euro fell to the neutral pivot point (1.4250) shortly after the release, and has lost 45 pips overnight
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