September’s eurozone PMI report has showed a decline down 45.9. This is the lowest level in 3 years. The report was published by Markit Economics. On September 20th, 2012. The major reason for the weakness the composite index is lower activity in the eurozone’s service sector (a decline from 47.2 down to 45.9).
The manufacturing sector is less weak (45.1 in September against 46 in August).
For reference, if the value of the indicator drops below 50.0, it indicates weakness. Any figures above 50.0 indicate relative strength. The eurozone’s composite PIM index has been below 50.0 for 8 months in a row.
The most terrible thing is that the decline takes place in Germany and France, not to mention peripheral eurozone economies.
Forex.
The chart below, courtesy of , reflects the current state of affairs in the market of EURUSD. The currency pair is trading within the 1,3171-1,2993 price range formed by wave а(С)/С of level H4.
The closest levels of support are 1,2915, 1,2882 and 1,2870. The downtrend will be completed as soon as the price overcomes the top of the MF sloping channel and consolidates above 1,3056 (as shown below).
