The stability of the euro after the European PMIs – 2022-11-23 11:49

The euro stabilized on Wednesday after the publication of purchasing managers’ indices for the eurozone, which reported a contraction in the economy, but less in November than in October.

At around 10:35 AM GMT (11:35 AM in Paris), the euro lost 0.02%, at $1.0303.

The flash PMI index published Wednesday by S&P Global, calculated on the basis of business surveys, rebounded slightly to 47.8, after 47.3 in October. The economy continues to contract for the fifth month in a row.

“The recession is tough, but it’s not getting worse,” said Calum Pickering, an analyst at Berenberg.

However, many analysts call for caution: “While it is true that the pessimism of recent months may have been exaggerated, the European economy remains fragile, as the latest OECD forecasts remind us,” warns Guillaume Dejean. Analyst at Western Union.

The Organization for Economic Co-operation and Development expects growth to slow by 0.5% in 2023 for the eurozone, with the economy in particular contracting by 0.3% in Germany.

Investors will also be watching for the publication of the “Minutes” (minutes) of the US Federal Reserve meeting.

Craig Erlam, an analyst at Oanda, said they would “track the tiniest details that would prove they acted too soon” by betting that the Fed will slow the pace of rate hikes to avoid dragging the US economy.

The New Zealand dollar, for its part, benefited from higher interest rates than expected by the country’s central bank, by 75 basis points.

“That brings that rate to 4.25%, which is the highest among the G-10 countries,” comments Lee Hardman, an analyst at MUFG. “This group of ten major currencies is among the most traded currencies in the world.

And the “kiwi,” as the currency is called, rose 0.32% against the dollar, to $0.6174 against one New Zealand dollar.

Wednesday class Tuesday class

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10:35 GMT 22:00 GMT

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