HomeContributorsFundamental AnalysisEuro-Zone's Services Sector Activity Fell In September

Euro-Zone’s Services Sector Activity Fell In September

For the 24 hours to 23:00 GMT, the EUR rose 0.12% against the USD and closed at 1.0973.

On the macro front, Euro-zone’s final services PMI declined more than the preliminary expectations to a level of 51.6 in September. In the prior month, services PMI had registered a reading of 53.5. Moreover, the nation’s producer price index (PPI) dropped 0.8% on an annual basis in in August, more than market consensus for a fall of 0.4%. In the previous month, the PPI had registered a revised rise of 0.1%. Meanwhile, the region’s seasonally adjusted retail sales rose 0.3% on a monthly basis in August, in line with market expectations and compared to a revised fall of 0.5% in the previous month.

Separately, in Germany, the final Markit services PMI fell to a level of 51.4 in September, higher than market anticipation and preliminary figures of a drop to a level of 52.5. In the previous month, services PMI had registered a level of 54.8.

In the US, data showed that the final Markit services PMI climbed to a level of 50.9 in September, in line with market expectations and confirming the preliminary figures. In the prior month, the PMI had registered a reading of 50.7. Further, the nation’s final durable goods orders rose 0.2% on a monthly basis in August, confirming the preliminary figures. In the prior month, durable goods orders had registered an increase of 2.0%.

On the contrary, the US ISM non-manufacturing PMI eased to a 3-year low level of 52.6 in September, more than market anticipation for a fall to a level of 55.0. In the prior month, the PMI had registered a level of 56.40. Also, the factory orders unexpectedly declined 0.1% on a monthly basis in August, defying market expectations for a rise of 0.5%. Factory orders had recorded a rise of 1.4% in the prior month. Additionally, the number of Americans filling for unemployment benefits unexpectedly advanced to a level of 219.0K in the week ended 27 September 2019, defying markets consensus for an unchanged reading.

In the Asian session, at GMT0300, the pair is trading at 1.0979, with the EUR trading 0.05% higher against the USD from yesterday’s close.

The pair is expected to find support at 1.0982, and a fall through could take it to the next support level of 1.0932. The pair is expected to find its first resistance at 1.1040, and a rise through could take it to the next resistance level of 1.1048.

Amid lack of macroeconomic releases in the Euro-zone today, traders would focus on the US trade balance data for August, nonfarm payrolls, average hourly earnings and unemployment rate for September, slated to release later in the day.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

GCI Financial
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