Eurozone manufacturing, services PMI data to grab heavy attention

Following the surprising interest rate cut by the European Central Bank (ECB) to a record low, eyes will remain the flow of economic data from the 17-nation region, to track the health of the economy, amid expectations the ECB will adopt even further measures to bolster recovery.

- France preliminary PMI Manufacturing probably rose to 49.5 vs. 49.1

- France preliminary PMI Services expected at 51.0 vs. 50.9

- Germany advanced PMI Manufacturing forecasted at 52.0 from 51.7

- Germany advanced PMI Services likely rose to 53.0 from 52.9

- Eurozone advanced PMI Manufacturing likely edged up to 51.5 vs. 51.3

- Eurozone advanced PMI Services probably rose to 51.9 vs. 51.6

- Eurozone advanced PMI Composite estimated at 52.0 vs. 51.9

The euro area’s economy, which grew in the third quarter, will welcome the latest piece of updates that will most likely show signs of stabilization in the 17-nation economy, although the economic momentum remains quite anemic for the time being.

Euro-area national output stagnated through the three months ending in September with France`s recovery fizzling out and growth in Germany slowing, disappointing hopes that a full-fledged recovery was finally taking hold after five years of recession and stagnation.

In Germany, growth slowed to 0.3 percent, as domestic consumption picked up and helped compensate for flat level of exports. Growth amounted to an annualized rate of 1.2 percent, slower than in the second quarter, when the German economy grew at an annualized rate of 2.8 percent.

The French economy contracted 0.1 percent in the July to September period from 0.5 percent growth recorded in the previous quarter; disappointing hopes for sustained recovery just months after the country broke out of a shallow recession.

In the FX market, the euro traded lower against the U.S. dollar, trading at 1.34213 after the pair kick started the session at 1.34370. The EURUSD pair has so far touched a high of 1.34414 and a low of 1.34134.