The euro eased toward $1.12 Friday as October surveys showed a higher U.S. composite PMI reading than the eurozone’s, even as both readings slowed from September.
In its 10:29 a.m. ET (14:29 UTC) update, FXStreet listed EUR/USD at 1.1203, 0.12% lower for the session and extending its losing run to three days. S&P Global and Hamburg Commercial Bank (HCOB) put the eurozone’s October flash composite Purchasing Managers’ Index (PMI) at 51.9, after 53.1 in September; its last lower result came in June. S&P Global’s U.S. flash composite PMI slipped to 57.6 from 58.4. Both surveys still indicated growth because their readings were above 50.
France’s index fell to 48.4 from 51.1, moving into contraction, while Germany’s reading declined to 52.8 from 53.8 but stayed in expansion. Reuters said French businesses linked weaker demand to political uncertainty and economic pressures.
Reuters also reported that eurozone input costs accelerated for a second month, with energy, fuel and transport among the pressures. It linked part of the increase to the Middle East conflict. Selling-price increases slowed from September, which Reuters said suggested some pressure on firms’ margins. Separately, commenting on the U.S. survey, Chris Williamson, chief business economist at S&P Global Market Intelligence, said, “Cost pressures remain a key concern.”
FXStreet’s Thursday update put EUR/USD around $1.1225 and reported that lower Treasury yields supported the euro as French fiscal concerns limited gains. EconoTimes previously covered the euro near $1.12 amid France’s debt concerns. The European Central Bank’s reference rate was $1.1205 per euro on Oct. 22, a daily benchmark separate from the intraday market quote.
The Federal Reserve lists its next two-day Federal Open Market Committee meeting for Oct. 27-28.
