Euro Loses Ground on Mixed PMI Report

Euro is mostly lower today, thanks in large part to the fact that there are mixed results in the latest PMI report. Concerns about the ability of the eurozone to sustain its recovery moving forward are manifesting following the latest mixed data from member countries.

The latest reports from Markit show that, while PMI improved overall for eight countries in the eurozone — rising from 51.3 to 51.6 — there are still some countries lagging behind. There are some concerns that these lagging countries could weigh on the eurozone economic recovery. The euro is down as a result.

Countries like Germany and Italy saw improvements, while France and Spain saw losses. Worries seem to center around France, since it continues to struggle in terms of PMI, and it is the second-largest economy in the eurozone. Plus, with talk floating around of negative deposit rates from the ECB, the euro is struggling.

It’s also not helping risk appetite, in general, that China’s manufacturing data showed some slowdown in November. With all of that, it’s not much of a surprise that the euro continues to struggle.

At 16:23 GMT EUR/USD is down to 1.3549 from the open at 1.3581. EUR/GBP is down to 0.8279 from the open at 0.8296. EUR/JPY is up to 139.6185 from the open at 139.2420.

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