German Manufacturing PMI misses expectations
German Manufacturing PMI (Dec) 43.4 vs expected 44.5
The weakness indicates that the US-China tariff phase one resolution has not improved the fortunes of the German manufacturing sector. The services PMI number performed well but it is not as important in the German economy ((Services PMI (Dec) 52.0 vs exp 52.0).
It's flash PMI day around the major nations and the most important numbers come from German, US and China. We are not getting the Chinese numbers but the US and German numbers give us a good indication of whats going on.
Germany has suffered heavily from Brexit and the economic slowdown in China. The trade wars hit the manufacturing levels hard as exports of cars and heavy industrial equipment notably slowed down. Last time out the reading printed at 44.1 still in contractionary territory.
In an immediate reaction, there was some weakness noted in EUR/USD and some flow into German safe haven assets.
Leading into the even the EUR has gained some strength against the dollar as the Brexit effect carried though to the single currency. EUR/GBP however has struggled and trades 0.13% lower on the day.