Europe is back at work today and after Wednesday’s holiday, Spain, Italy, France and Germany all released their manufacturing PMI numbers this morning. We know that growth ended Q3 on a high note and these are the first numbers to show how the momentum carried over into Q4. For the Eurozone as a whole, the final IHS Markit Eurozone Manufacturing PMI rose to an 80-month high of 58.5 in October, up from 58.1 in September.
Growth of both output and new orders remained elevated, while the pace of job creation accelerated to a survey-record high. Markit noted that, “the upturn was again led by a strong-performing core of Germany, the Netherlands and Austria. PMI readings were unchanged in Germany and Austria, while the Netherlands PMI rose to its highest level since February 2011. The expansions in Italy (80-month record) and Spain (29-month high) both
accelerated, while the France PMI held steady at September’s 77-month high. Growth was also recorded in Ireland and Greece, meaning all of the nations covered registered expansions for the fifth straight month”. EUR/USD picked up from the low 1.16’s overnight to open in London around 1.1650. '
It has been on a 1.16 big figure ever since 7pm London time on Friday and for the whole of this week’s trading it has been trapped in an extremely tight range from 1.1603-1.1660. EUR/CAD, meantime is at 1.4958; almost exactly unchanged on the day so far but still comfortably above its 20, 50, 100 and 200 day moving averages.