The euro slid to its lowest point since late July following the release of robust September business surveys across the eurozone. According to FX Street, the flash composite purchasing managers’ index (PMI) for September came in at 53.1, well above the forecasted 51.5, marking the strongest reading since April 2023.
In addition, the services PMI also outperformed expectations, registering 53 compared to the forecast of 51.7, signaling continued strength in the eurozone’s service sector. FX Street noted that these figures represent the best business survey results Europe has seen since April.
Despite the upbeat data, the euro weakened on the day the surveys were published, suggesting market participants may have already priced in the positive momentum or are considering other factors. For Japanese investors, the euro’s volatility amid strong European data highlights the importance of closely monitoring FX movements when managing cross-border exposures.