EUR/USD up 0.15%. Chinese PMI weakest result since 2012.

During Asian session the EUR/USD was trading slightly higher than the Friday’s closing price, when the US dollar strengthened more than 1%. As of 3:00 AM EST the currency pair was trading at 1.0847, up only 0.15%.

Today Chinese stocks were down due to disappointing factory activity report. Chinese Purchasing Managers’ Index (PMI) was 49.4 in January missing the expectations of 49.6. This is the lowest figure since 2012 and the 6th consecutive month below 50, noting that a score below 50 indicates a contraction in a sector.

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According to HSBC economists, Jing Li and Julia Wang, both domestic demand and input prices slightly declined, which suggest a degree of stabilization in the world’s second-largest economy. However they warned that risks to growth probably remained on the downside with overseas demand falling and employment still weakening. They also added, that today’s data suggest that deflationary pressures still persist in the manufacturing sector and will continue to weigh on overall economic growth.

Main Asian indices today have the following performance:

  • Shanghai Composite plunged 1.78%, closing at 2,688.85.
  • Nikkei 225 gained 1.98%, finishing the session at 17,865.23.
  • Hang Seng Index closed at 19,595.50 losing 0.45%.

Oil prices decreased during Asian session today. As of 02:54 ET, the WTI Crude was trading at 33.05 USD/bbl, down 1.70%, thought it opened higher and even reached 34.18$ early in the morning. Brent Crude was trading at 35.37 USD/bbl, which was 1.72% lower than the previous close.

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I’m a finance specialist with 4+ years of working experience, out of which 2 years as a SME relationship manager at Byblos Bank and 2 years as a Finance Director in a Food & Beverage sector. My academic background include BA in economics, MA in finance, CFA Level 1 and F1, F2, F3 level of ACCA. I’m also experienced in Forex/CFD trading and Forex/ Equity markets analysis.

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