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Euro-Zone Retail PMI Contracts for Four Straight Months, Euro-Dollar (EURUSD) Slips to 1.4310
Monday, 29 September 2008 08:23:48 GMT  |  DailyFX Research
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The eurozone September Retail PMI dropped to 46.2 from 47.7 in the previous month, which points to a renewed acceleration in the contraction of the sector. Data point to falling gross margins and job cuts, with sales lower than last year. High inflation and a weakened economic outlook will continue to weigh on consumption trends as labour markets are starting to turn and jobless rates are set to rise again. Meanwhile, German names drove EUR-USD to 1.4310 lows as concern over the European banking sector grew. The problems in Germany's Hypo Real Estate weighed heavily on the Dax and Commerzbank shares dropped more than 22%, while France's Natixis also posted losses of more than 20%. The market is fearful that Europe may not be able to get their own rescue package, which has shifted focus to vulnerable European financial institutions. EUR-USD posted a small bounce on profit taking, which saw prices trade back above 1.4350

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