The Euro has strengthened against the Pound and the US Dollar during the last 2 hours following an improvement in the Markit Purchasing Managers Index (PMI) data, which rose to an 80 month high during the month of October. Although this was marginally below what was expected (a reading of 58.6), a reading of 58.5 was recorded and did little to soften the Euro’s charge.
The news should welcome future investors back into the Euro, who may have been holding back following the inflation data posted earlier this week that showed inflation had dropped off last month, a worrying sign considering the European Central Banks’s decision to cut their bond buying program down to €30bn per month from €60bn. Today’s data further reinforced that it was the right time to start easing monetary policy.
Today’s good reading from the manufacturing sector was down to a strong new number of goods being orders, high levels of output and a fresh record high of job creation within the industry. Leading the storm was Germany, which posted a record high in Manufacturing PMI of 60.5.
Political update – Catalan fears still weigh on the Euro
Catalan’s push for independence seems to have been halted for now by the Spanish government, following the eight arrests today of the ministers that were behind the referendum last month. They have now bee detained by the Spanish government and are unable to go home.
Catalan President Carles Puigdemont also has a warrant out for his arrest, after he fled to Brussels earlier this week for fears of his safety whilst in Spain. These are seemingly worrying signs for anyone involved in the referendum and Carles Puigdemont must surely be fearing the worst. He has vowed not to return to Catalan to be arrested unless he gets a fair trial.