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 Team members said. Trade Desk Thoughts: The PMI release shows the euro-area manufacturing side of the economy has contracted for eleven consecutive months. The release number of 36.8 is slightly bigger than what analysts expected. ”Over the last few months, the Euro-zone PMI survey continues to establish record lows, pointing out that the economic contraction may be stronger than previously thought,” Trade Team said.

Forex Technical Reaction: The euro moved side-ways during the European session, slightly above the 1.3300 swing area.