EUR/USD Price Analysis & News
- Reality Check for EU Recovery Optimists
- EUR/USD Dives on Eurozone PMI
Reality Check for EU Recovery Optimists
The Euro has come under the backfoot following broadly weaker than expected Eurozone PMI survey’s. Most notably the French PMI which posted a big miss across the board with the manufacturing sector moving back into contractionary territory. IHS Markit noted that the expansion in new orders had slowed to a snail’s pace, while there had been a reacceleration in the rate of job cutting. Meanwhile, German PMIs were more mixed with the manufacturing sector showing a slight improvement, partially offsetting the weakness observed in the services sector with Germany. That said, as I had alluded to following yesterday’s ECB minutes, caution is required for being married to the “Euro”phoria narrative.
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EUR/USD Reaction to French and German PMI’s