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Euro Tumbles as Manufacturing Woes Deepen
2 Jan
Summary
- Eurozone manufacturing output declined in December for the first time since February.
- The HCOB Eurozone Manufacturing PMI fell to 48.8 in December from 49.6.
- EUR/USD dropped below 1.1800, reaching a one-and-a-half-week low.
The euro experienced a notable decline today, falling well below the 1.1800 level against the US dollar. This depreciation follows economic data indicating a subdued performance in the region's manufacturing sector.
Latest figures reveal that the eurozone's manufacturing output contracted in December, marking the first decrease since February. The HCOB Eurozone Manufacturing PMI, a key indicator of sector health, dropped to 48.8 in December from 49.6 in November. This reading is the lowest recorded since March 2025, signaling a significant setback for industrial activity.
Consequently, the EUR/USD currency pair saw a sharp fall, testing one-and-a-half-week lows. As of the latest reports, the pair was trading at 1.1754, reflecting a 0.22% decrease on the day. Meanwhile, EUR/INR futures on the NSE remained relatively stable.
