| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 08:15 | France | Services PMI | November | 56.6 | 56 | 58.2 |
| 08:15 | France | Manufacturing PMI | November | 53.6 | 53 | 54.6 |
| 08:30 | Germany | Services PMI | November | 52.4 | 51.5 | 53.4 |
| 08:30 | Germany | Manufacturing PMI | November | 57.8 | 56.9 | 57.6 |
| 09:00 | Eurozone | Services PMI | November | 54.6 | 53.5 | 56.6 |
| 09:00 | Eurozone | Manufacturing PMI | November | 58.3 | 57.3 | 58.6 |
| 09:30 | United Kingdom | Purchasing Manager Index Manufacturing | November | 57.8 | 57.3 | 58.2 |
| 09:30 | United Kingdom | Purchasing Manager Index Services | November | 59.1 | 58.5 | 58.6 |
EUR appreciated against other major currencies in the European session on Tuesday, supported by the better-than-expected Eurozone’s PMI readings and the latest comments by the ECB’s officials.
The IHS Markit reported its flash estimates showed that the Eurozone’s business activity expansion accelerated in early November, rebounding from the six-month low reached in October. The headline IHS Markit Eurozone Composite PMI, which tracks business trends across both the manufacturing and service sectors in the euro area, increased to 55.8 this month from 54.2 in October. This marked the first advance in the headline indicator in four months. Economists had expected the gauge to drop to 53.2 in November. The report also revealed that the region’s manufacturing PMI rose to 58.6 in November from 58.3 in the previous month, exceeding economists’ forecasts of 57.3. At the same time, the Eurozone’s services PMI jumped to 56.6 from 54.6 October, also exceeding economists’ estimate of 53.5.
The latest comments of the ECB’s Executive Board member Isabel Schnabel and its Governing Council member Klaas Knot also helped EUR.
Schnabel stated that she sees that inflation risks in the Eurozone are skewed towards the upside and suggested that it is possible that inflation may fall below the 2%-target in the medium term. She also stated it remains plausible to stop the Pandemic Emergency Purchase Program (PEPP) purchases in March of 2022.
The remarks of Knot echoed those of Schnabel. He also said that the ECB is likely to end PEPP purchases in March next year. In addition, the policymaker said that he sees the ECB interest rate lift-off sometime after 2022.