FOREX-Euro skids as German economic gloom deepens

FOREX-Euro skids as German economic gloom deepens

* German flash PMI worse than expected in Sept * Yen undermined by hopes for U.S.-China trade talks * China’s yuan, Aussie, make some gains * Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh By Tommy Wilkes LONDON, Sept 23 (Reuters) – The euro fell on Monday after German flash purchasing managers’ index survey data for September was weaker than expected, raising more fears about the health of the economy. The single currency, trading around $1.10 before the numbers were released, dropped 0.4% to as weak as $1.0972, its weakest since Sept. 12. The survey showed that the German private sector activity shrank for the first time in 6-1/2 years in September as a manufacturing recession deepened unexpectedly and growth in the service sector lost momentum. The dollar was boosted by the euro’s decline, and its index – which measures the greenback against a basket of currencies – was last up 0.3% at 98.776. Increasing talk of fiscal stimulus in the euro zone has raised bond yields in the region, although not all analysts see much of a boost for the single currency in the context of concerns about global trade and slowdown fears. "We see little upside scope for EUR/USD here," MUFG analysts said in a note. Elsewhere, foreign exchange markets were mostly quiet, though there were some signs of risk appetite as Japan’s yen weakened against higher-yielding FX after talks in Washington between U.S. and Chinese trade deputies were described as "productive". Volumes in Asia were dampened by […]

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