Talking Points
– EURUSD balks at $1.3600 on weaker German labor data.
– Euro-Zone PMI figures a touch softer, signaling “top” in growth.
– See noteworthy events on the global FX economic calendar for the week of September 29 to October 4, 2013.

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EURO-ZONE ECONOMIC CALENDAR

German labor market data surprised lower by a fair margin in September, stirring concerns that regional economic activity may have reached its apex midsummer. Indeed, the slight retracement in individual Euro-Zone countries’ PMI figures points to a “top” in growth having been reached in the near-term, as it appears that a lack of credit growth in the Euro-Zone has become a drag.

This concern dates back to early-August when ECB President Draghi first noted the decline in Euro-Zone excess reserves. As noted several weeks ago, we believe there have been indications that another LTRO may be in the works, which would be EUR-negative similar to December 2011 and February 2012.

Read more: Euro, US Dollar Drop versus Japanese Yen amid Political Déjà Vu

UK ECONOMIC CALENDAR

The slowdown in Euro-Zone economic activity midyear has manifested itself in UK economic data, as the September PMI Manufacturing report showed today. A softer than expected print has manufacturing activities near a two-year peak, but slightly off of its yearly high seen midsummer. The UK economy is significantly stronger than where it was just one year ago; and resiliency in data is expected barring a deeper drag in Euro-Zone economic activity.

Read more: Pound Eyes 1.6200 on More Hawkish BoE, Stronger U.K. Recovery

SWISS ECONOMIC CALENDAR

There are no data due for the Swiss Franc on Tuesday, October 1.

Read more: US Dollar Set for Breakout, Risk and Budget Standoff Decide Magnitude

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— Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com
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