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Despite Solid Services Data Set, Euro Reaction Muted pre-ECB Decision

Despite Solid Services Data Set, Euro Reaction Muted pre-ECB Decision

David Schutz,

THE TAKEAWAY: Euro-area March PMI servicesrise -> PMI composite better than expected -> Euro remains in tight range ahead of ECB decision

The Euro-area services sector experienced positive results overall in March. The data failed to move markets, though, as focused remained on the upcoming European Central Bank rate decision later in the day. European powerhouse Germany saw a strong reading which came it at 52.1 versus the expected 51.8.

France, Italy, and Spain saw similar gains, with “core” Eurozone countries (Germany and France) staying above the critical mark of 50 which differentiates between expanding and contracting market.

Despite_Solid_Services_Data_Set_Euro_Reaction_Muted_pre-ECB_Decision__body_Picture_5.png, Despite Solid Services Data Set, Euro Reaction Muted pre-ECB Decision

The Euro was largely unmoved by today’s release, as market focus remained on the ECB’s upcoming rate decision. The central bank is expected to leave its benchmark rate unchanged at 1.00%.

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