European PMI still very low

The Eurozone's composite PMI index remains unchanged at 47.8 points, meaning that businesses have seen recession coming for five months now. We can see that the situation in the Eurozone as a whole fell in line with previous readings, while it improved in Spain or Italy. Nonetheless, we can see that in most cases there is negative sentiment nonetheless. S&P Global indicates that with a possible inflationary peak, the negative impact on demand may weaken. Additionally, S&P Global believes that the impact of winter on demand should be rather limited, although this will largely depend on the weather. Source: Bloomberg

The UK also shows little change. The index for services came in at 48.8 points, in line with the previous reading, while the composite index fell marginally lower to 48.2 points with the previous reading of 48.3 points. EURUSD chart, D1 interval. Despite the fact that the PMI indexes do not leave a positive outlook for the Eurozone, the lack of a drastic increase in gas prices recently has to be viewed positively. In addition, the market basically ignored Friday's very good data from the U.S. labor market. The market estimates that the Fed will raise rates by 50 bps in December, while the Eurozone hike is expected to be a minimum of 50 bps, but there is still a chance for higher interest rate hike. Source: xStation5