It was a mixed day for the euro, as although it made gains against sterling, it weakened against the US dollar. However, this had more to do with positive economic data from the US rather than anything specifically negative coming from the eurozone.
Indeed, its manufacturing sector posted its best figures for 6.5 years. From August’s factory PMI of 57.4, it jumped to 58.1, showing that the sector grew strongly over the last month. In addition, Greek factories grew at their fastest rate for almost ten years.
Speaking of Greece, the government released its first draft of the 2018 budget, where it projected a primary surplus target of 3.5% and a GDP growth rate of 2.4%. It remains to be seen how optimistic these figures are, but the factory figures appear to highlight the Greek economy is moving in the right direction.
Later today we will see Spain’s consumer confidence and jobless claims. Given the Spanish riot police’s actions over the weekend, in which nearly 900 people were injured during a crackdown on the referendum, the figures are unlikely to dominate the headlines. The fallout from the controversies could cause some instability in the eurozone.