Forexlive European FX News 3 Oct - European service PMI's fall

Author: Giles Coghlan | Category: News

European trading news


  • UK FTSE: -0.66%
  • Euro Stoxx: +0.22%
  • France 40 (CAC): +0.37%
  • IBEX:+0.22%
  • Italian FTSE: +0.17%
  • Gold: +0.36% 1504.90
  • US OIL: -0.47%
European trading news

The session started quietly after heavy selling in the Nikkei (<-2.00%) overnight following Wall St's lead. The morning European session saw European service PMI's released. The concern recently has been whether or not the weak construction PMI's from Europe would spill over into the Service PMI's. Today, we got our answer that, 'yes, they have'. See here for a run down on the various weak PMI readings we got. 

Gold was supported on this news and although the European indices were mixed, there were few significant equity moves save the FTSE 100 which reached lows of 7073 for the day. You guessed it, on Brexit concerns.

Speaking of Brexit there is now a stalemate as both the EU and the UK  don't want to be seen as the ones that scrap the chances of a deal.The GBPUSD bobbed around the 1.2300 in a fairly narrow range waiting for a fresh driver, which it will undoubtedly find in the ebb and flow of the latest Brexit headlines.  UK PM asked in Parliament for a vote on the UK's proposals to the EU before the European Summit on 17-18th October, as having backing for the deal before going to the EU would be more powerful. PM Johnson said he would reflect on the suggestion. 

US Oil stayed depressed near yesterday's lows as a slow down in global growth impacts the outlook for demand which is why we have seen Oil plummet in the last couple of days. The US data prints today will be closely viewed in light of recent events and expect any negative prints to encourage traders to continue in the same direction as yesterday. Gold up, bonds up, (yields down), USD down and oil down. It's the old black and yellow trading I flagged with today's song from the trade idea section.

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