Eurozone PMI Unexpectedly Lower
The euro traded steadily above $1.35 after losing ground on Thursday when data from the eurozone indicated that the region's recovery was looking wobbly. The common currency traded at $1.3520 at 8:15 GMT on Friday morning as investors took a critical look at the 17 nation bloc.
The region's PMI data showed that business activity in the region slid in November, a sign that the eurozone's recovery to was fizzling. To make matters worse, consumer confidence data out on Wednesday fell for the first time in a year.
The Wall Street Journal reported that one of the most troubling factors from Wednesday's data was the growing discrepancy between Germany and France, the bloc's two largest economies. In Germany, business activity picked up, with data showing it grew at its fastest pace in 10 months. By contrast, French business activity slid and led many to speculate that the nation could be headed for its third recession in the past five years.
PMI data from the eurozone fell to 51.5 in November from 51.9 in October, adding to worries that the region's recovery was slackening. Although the figure remained above the 50 point mark that separates expansion from contraction, the drop indicated that the bloc's fragile recovery was losing ground.
In another report from the European Commission, data showed that the region's consumer confidence fell as well. The lower figures likely mean that consumer spending will slip in the last few weeks of the year.
Moving forward, investors will be watching the European Central Bank for further easing. Europe's central bankers said the bank had plenty of options in its arsenal to help stimulate the region's recovery, which could come in handy if the bloc continues on the same path.
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