Investors awaiting signs whether the euro is ready to stage a comeback will be closely watching next week’s regional manufacturing report.
The preliminary data, due next Friday, will help investors bet whether Europe is heading for a more robust recovery, or conclude that recent positive signals were short of the mark. The manufacturing PMI is forecast to reveal a stabilizing economy, with Nomura International Plc reporting wider signs of a recovery that could strengthen the common currency into next year.
The euro is currently hovering near a one-month low at $1.1029, while benchmark German bond yields are edging up again after a huge bond rally in the first eight months of the year. Nomura sees the euro trading at $1.10 by year-end before rising about 5% to $1.16 by the end of December 2020.
Source : Bloomberg