Sinking Eurozone PMI Drags Down Forint
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The economic performance of the Eurozone decreased more than analysts expected, according to the preliminary values of the Purchasing Managers' Index (PMI) presented by the S&P Global Market Intelligence economic research institute in London.
The preliminary value of the composite PMI for August, which follows both manufacturing and service industry data, weakened to 47 points, the lowest level since November 2020, from 48.6 points in July. Analysts expected a less deteriorating indicator, 48.5 points.
Due to the unfavorable purchasing manager’s index data in the euro area - mainly in Germany and France - the forint began to weaken rapidly, parallel to the fact that the euro almost broke down against the dollar.
The HUF is currently around 383.5 against the common European currency, although the exchange rate is starting to recover after the initial rapid fall.
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