Euro Weakens on Growth Concerns Amid Mixed PMI Data

The Euro (EUR) is under pressure as economic growth concerns weigh on the currency. The latest Purchasing Managers’ Index (PMI) data for Germany and the Eurozone met expectations but failed to provide any bullish momentum. The Final HCOB Composite PMI for Germany held steady at 53.8 in September, while the Services PMI matched forecasts at 53.0. Across the broader Eurozone, the Composite and Services PMIs also aligned with estimates at 53.1 and 53.0, respectively.

European Central Bank (ECB) Chief Economist Philip Lane highlighted growing risks to the regional outlook, noting that high long-term interest rates are continuing to constrain economic growth. He also pointed out that medium-term inflation expectations remain de-anchored, adding to uncertainty surrounding price stability in the Eurozone.

The Canadian Dollar (CAD) is facing pressure from declining crude oil prices, which is helping to limit broader EUR/CAD losses. West Texas Intermediate (WTI) crude has continued to slide, trading near $88.90 per barrel. Oil markets retreated sharply after G7 nations agreed to release 100 million barrels of crude and diesel from emergency reserves, while committing to avoid energy export restrictions.

Despite ongoing geopolitical conflict, regional crude supplies have shown signs of recovery. Data from Kpler revealed that regional exports briefly surged above pre-war levels in late September, peaking at up to 22.5 million barrels per day compared to the pre-war baseline average of 18 million barrels per day recorded between March 2025 and February.