THE TAKEAWAY: Euro-Zone PMI data for June improves on the whole, especially in the periphery; early signs that recession may be plateauing > EURUSD BULLISH
Several Euro-Zone data prints (individual countries and broader regional) were released between 03:30 EDT/07:30 GMT today, which collectively point towards a recession that may be slowing. Accordingly, with economic data turning better for the Euro-Zone and the struggling peripheral countries, the Euro has benefited marginally on the news. The important data fueling the rally:
- Spanish PMI Manufacturing (JUN): 50.0 versus 48.5 expected, from 48.1
- Italian PMI Manufacturing (JUN): 49.1 versus 47.8 expected, from 47.3
- French PMI Manufacturing (JUN F): 48.4 versus 48.3 expected unch
- German PMI Manufacturing (JUN F): 48.6 versus 48.7 expected unch
- Euro-Zone PMI Manufacturing (JUN F): 48.8 versus 48.7 expected unch
- Italian Unemployment Rate s.a. (MAY P): 12.2% versus 12.1% expected, from 12.0%
EURUSD 1-minute Chart: July 1, 2013
Charts Created using Marketscope – prepared by Christopher Vecchio
Price action ahead of and directly after the releases (spanning from 03:45 EDT/07:45 GMT to 04:00 EDT/08:00 GMT) was indicative of demand for Euros, with the EURUSD rallying from $1.3018 to as high as 1.3052. However, at the time this report was written, amid downside pressure in the EURJPY, the EURUSD had fallen back to 1.3037.
There are several other key events on the European docket today; check FX Headlines: European Data Watch for July 1, 2013 for more details.
--- Written by Christopher Vecchio, Currency Analyst
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