European Manufacturing Expands The Most Since June 2006, Swiss Manufacturing Extends Seven Month Advance
• IMF’S Sweeping Demands Signal Shift– Wall Street Journal
• Greece Gets Aid, Promises Austerity– Wall Street Journal
• ECB Extends Lifeline to Greece - Financial Times
• EU Bets $146 Billion in Greek Bailout Medicine Will Stop Contagion Threat- Bloomberg
• Merkel Says She was Right on Greece, Winning “Unthinkable” Cuts - Bloomberg
EUR/USD – Europe’s manufacturing industry in April expanded at the fastest pace in approximately four years as companies increased production in order to meet export orders as the global economy continues its northern journey from its worst recession since WWII. Figures showed that the final reading for the PMI manufacturing index for the euro-area advanced to 57.6 ( a reading above 50 indicates expansion) from the initial estimate of 57.5 released on April 22nd , exceeding expectations of 57.5 and marking the highest level since June 2006. The reading highlights an improved outlook for the region despite Greece’s fiscal woes as the data continues to point to an export driven expansion. To discuss and other topics, please visit the EUR/USD forum.
USD/CHF – Switzerland’s SVME-purchasing managers index jumped to 65.9 in April from 65.5 in March, surpassing economists’ expectations of 65.5, and marking the readings eighth successive monthly advancement as the economy shows signs of strength. Specifically, an improving economic picture for Europe has brightened the outlook for the export driven economy with the SANB forecasting GDP accelerating to 1.5% in 2010. Looking ahead, investors are pricing in a 43.0 basis point rate hike over the next 12 months, according to the Credit Suisse overnight index swaps index as the risks for deflation have fallen in the wake of the economic recovery.
Euro Weakens as Greece’s Fiscal Crisis Fails to Calm Concern, British Pound Extends Friday’s Southern Journey
Written by Michael Wright
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