Talking Points:
- Euro May Drop Further as Soft PMI Data Bolsters Stimulus Expansion Bets
- Australian, NZ Dollars Rise as Post-ECB Risk Rally Moves to Asian Bourses
- See Economic Releases Directly on Your Charts with the DailyFX News App
The preliminary set of October’s Eurozone PMI figures headlines the economic calendar in European trading hours. The regional Composite gauge is expected to show the pace of manufacturing- and service-sector growth slowed for the second consecutive month, registering at the weakest level since February.
Economic news-flow out of the currency bloc has increasingly disappointed relative to consensus forecasts over the past month, hinting that analysts are underestimating the degree of malaise plaguing the region. That opens the door for a downside surprise, which may feed ECB stimulus expansion bets and compound downside pressure on the Euro.
The sentiment-linked Australian and New Zealand Dollars outperformed in overnight trade as Asian bourses mirrored yesterday’s swell in risk appetite on Wall Street. The MSCI Asia Pacific regional benchmark equity index rose over 1 percent as traders cheered a dovish ECB policy announcement that paved the way for further easing at the central bank’s December sit-down.
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Asia Session
| GMT | CCY | EVENT | ACT | EXP | PREV |
|---|---|---|---|---|---|
| 01:30 | CNY | China September Property Prices | - | - | - |
| 01:35 | JPY | Nikkei Japan PMI Mfg (OCT P) | 52.5 | 50.5 | 51.0 |
| 02:00 | CNY | Conference Board Leading Index (SEP) | 339.5 | - | 334.2 |
| 05:00 | JPY | Leading Index CI (AUG F) | 103.5 | - | 103.5 |
| 05:00 | JPY | Coincident Index (AUG F) | 112.2 | - | 112.5 |
European Session
| GMT | CCY | EVENT | EXP | PREV | IMPACT |
|---|---|---|---|---|---|
| 07:00 | EUR | Markit France Mfg PMI (OCT P) | 50.2 | 50.6 | Low |
| 07:00 | EUR | Markit France Services PMI (OCT P) | 51.7 | 51.9 | Low |
| 07:00 | EUR | Markit France Composite PMI (OCT P) | 51.6 | 51.9 | Low |
| 07:30 | EUR | Markit/BME Germany Mfg PMI (OCT P) | 51.7 | 52.3 | Medium |
| 07:30 | EUR | Markit Germany Services PMI (OCT P) | 53.9 | 54.1 | Medium |
| 07:30 | EUR | Markit/BME Germany Composite PMI (OCT P) | 53.7 | 54.1 | Medium |
| 08:00 | EUR | Markit Eurozone Mfg PMI (OCT P) | 51.7 | 52 | Medium |
| 08:00 | EUR | Markit Eurozone Services PMI (OCT P) | 53.5 | 53.7 | Medium |
| 08:00 | EUR | Markit Eurozone Composite PMI (OCT P) | 53.4 | 53.6 | Medium |
| 09:00 | EUR | Eurozone 2Q Government Debt | - | - | Low |
| 09:00 | EUR | Eurozone 2Q Government Deficit | - | - | Low |
Critical Levels
| CCY | Supp 3 | Supp 2 | Supp 1 | Pivot Point | Res 1 | Res 2 | Res 3 |
|---|---|---|---|---|---|---|---|
| EURUSD | 1.0685 | 1.0936 | 1.1022 | 1.1187 | 1.1273 | 1.1438 | 1.1689 |
| GBPUSD | 1.5146 | 1.5285 | 1.5339 | 1.5424 | 1.5478 | 1.5563 | 1.5702 |
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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