Trade Desk Thoughts - German Flash Manufacturing PMI, German Flash Services PMI

German Flash Manufacturing PMI Actual 48.1, Expected 49.2, Previous 49.7 (Revised from 49.9)
German Flash Services PMI Actual 49.3, Expected 50.6, Previous 51.4 (Revised from 50.6)

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.

Trade Desk Thoughts: The German service PMI was released at 49.3, showing a drop since the last month, while the manufacturing index came at 49.3. Last month, the manufacturing side of the economy dipped into the contraction phase, indicated by a read lower than 50.0, for the first time in recent years. It seems that the manufacturing index is being affected much more by the global slowdown than the service index, even thought this month is the first time when service side of the economy dropped under the 50.0 read, into the contraction phase.

Forex Technical Reaction: The euro has weakened since the Asian session started and is now trading just above the neutral pivot point

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