China PMI weaker than expected in September, but still up from August
– Another disappointing Tankan
– Focus on European and US PMI today
What to watch for today
EUR: Only a small bounce. We expect the euro area final manufacturing PMI for September to confirm the improvement from 45.1 to 46 reported in last week’s flash estimate. Given weakness in the French numbers last week, this implies some bounce in the periphery. Still, the levels remain sufficiently contractionary for markets to continue pricing ECB easing, and we think the EUR is likely to struggle against that backdrop.
Click here to read the full report: FX Daily
Credit Suisse