A slew of weak PMI numbers out of the eurozone this morning have put the single currency on the back foot, down 50 points and bringing it close to the $1.2500 mark.
Services PMIs from Germany, France and Italy, were mixed, with Germany’s unchanged, France’s weaker and Italy’s actually slightly better. However, the overall eurozone indices reflected the parlous state of the region, with the services index for August coming in at 47.2, just below the previous estimate, and the composite index dropping to 46.3 from an earlier forecast of 46.6.
In addition, investors seem to be getting increasingly nervous ahead of the ECB meeting tomorrow. This is understandable, since the date has been circled in everyone’s diaries for a month now. As usual, we are really none the wiser about what might, or might not, be announced, so we must be content with a high-degree of crystal ball gazing that provides much heat, but little light. All we can really do is wait.