Release Explanation: 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. It measures the activity level of purchasing managers, who are surveyed on production, employment, inventories, orders, and delivery data. The PMI is split into reads on manufacturing, service, and construction industries. A read over 50 denotes growth.

Trade Desk Thoughts: The PMI release shows the euro-area manufacturing side of the economy has contracted for ten consecutive months. The release number of 33.9 is slightly smaller than analyst expectations of 34.0. The Euro-zone PMI survey continues to establish record lows, pointing out that the economic contraction may be stronger and even more prolonged than previously thought.

Forex Technical Reaction: The euro fell 60 pips since the new trading had day started, and is now trading just above TheLFB S1 (1.3160).