Forex news for European morning session- 23 September
- Where now for the USDJPY this week?
- Global equities supported by oil prices.
- NZD: rate meeting surprise on September 25?
- US Oil falling after earlier production news
- Oil news : Saudi oil production to be restored by next week
- Currencies in focus after weak PMI's
- European equites fall on weak PMI's
- Eurozone September manufacturing PMI's 45.6 vs 47.3 expected
- Weak German and French PMI's weigh on EURUSD
- Germany September flash manufacturing PMI 41.4 vs 44.0 expected
- France September Manufacturing PMI 50.3 vs 51.2
- Lessons for the ECB: Indian stocks rise on fiscal stimulus
- Brexit: PM Johnson does not want to raise hopes of a Brexit breakthrough in New York.
- Brexit: PM Johnson on the wires
Markets:
- Dax -1.13%
- UK FTSE -0.70%
- Euro Stoxx -1.02%
- Italian FTSE: -1.13%
- Gold +0.14%
- US Crude -0.67%
The main news from this session was the weak PMI data out of the eurozone from France and Germany. France missed on both manufacturing and services data as the downward spiral for the eurozone starts to flow into the services PMI's.
Germany's 41.4 manufacturing level is, according to Markit, "the sharpest decline in business conditions across the goods-producing sector since the depths of the global financial crisis in mid-2009". Markit also noted that at current trajectory, "Germany may not see any growth before year-end"
In the eurozone the demand for goods and services have fallen to their lowest rates in over 6 years, expectations are stuck at lowest levels since 2012 and GDP looks set to rise by just 0.1% in Q3. A very bleak set of data points from the eurozone and expectations are going to rise for fiscal stimulus. The India's nifty provided a potential lesson for the eurozone when it stormed further gains on the back of last Friday's corporate tax cuts. EURUSD broke 1.1000 and has kept underneath that level.
Oil prices
These took a move downwards when it was announced, mid-session, that Saudi's Khurais and Abqaiq oil facilities would be set to have restored oil production by next week. This news is amidst some flip-flopping in oil reports revolving around when exactly production would or would not be restored. Just goes to show the economic value of information - real or otherwise. The primer for when sellers or buyers would enter was posted earlier in the session, see here.
GBP
The GBP fell further on more Brexit woe that PM Johnson is not optimistic about a Brexit deal getting done this week. With the supreme court due to deliver its verdict this week as well, the GBP sank on the immediate sentiment of no-deal appearing imminent. It really is 'deal' or 'no-deal' trading for the GBP right now.
