Euro Stays Weaker After Eurozone PMI Data Miss Forecasts

A facts-only brief, written by a local AI model from this article in The Wall Street Journal, October 23, 2026. It may contain mistakes, and it is not the article: the full story is at wsj.com.

Sterling climbed to a near 17-month high against the euro after October U.K. purchasing managers’ index data exceeded forecasts, while the euro weakened against the dollar following weaker-than-expected eurozone and French PMI readings. The U.K. composite PMI rose to 53.1 from 52.0 in September, surpassing the 52.7 consensus, which supported expectations for a Bank of England rate hike next month. Conversely, the eurozone composite PMI dropped to 51.9 from 53.1, missing the 52.8 estimate, and the French composite PMI fell to a four-month low of 48.4, signaling contraction. The euro declined 0.2% to $1.1192, while sterling appreciated to 0.8360 pounds per euro.

Background

• S&P’s Joe Hayes noted that September’s rebound in French economic activity was short-lived due to tightening financial conditions and political pressures.
• ING’s Francesco Pesole stated that the euro’s sensitivity to French fiscal risks has reduced but could re-emerge if the yield spread between French and German bonds exceeds 200 basis points.
• Citi Research strategists expect the dollar to remain in a 155-160 yen range in the near term, with a rise toward 160 potentially triggering yen-buying intervention.
• Kenanga economists revised their end-2026 dollar-to-rupiah forecast to 17,900, citing external risks and domestic uncertainty that could pressure the Indonesian currency.

Read the full article at wsj.com

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