EURJPY TECHS: Bull Cycle Extension

• MNI: GERMANY SEP FINAL MANUF PMI 49.5 (48.5 FLASH, 49.8 AUG)

The Italian manufacturing PMI slipped back into contraction in September, at 49.0 (49.9 cons; 50.4 August). Taking into account the Spain miss, we watch for any revisions on Germany for a potential downward revision for the Eurozone-wide release (scheduled for 09:00 BST / 10:00 CEST, flash at 49.5). Key highlights below:

• "Contributing to the contraction in operating conditions was a renewed drop in new orders. September data indicated a solid decrease in new sales, and one that was the fastest since June. The reduction in new business was attributed by firms to hesitancy among customers amid economic uncertainty."
• "International demand conditions also waned, as new export orders fell at the quickest rate since March. Less favourable demand conditions in key markets in Europe, the US and Asia weighed on new sales from abroad, according to panellists."
• "Subsequently, firms adjusted their output levels down in September, with production contracting at a modest pace. The fall contrasted notably with the strongest rise in output for almost two-and-a-half years in August."
• "Planned investment in expanding business operations reportedly underpinned a fresh rise in employment in September.

• MNI: FRANCE SEP FINAL MANUF PMI 48.2 (48.1 FLASH, 50.4 AUG)