Talking Points:
- Losses seen in EUR/USDafter disappointing French PMIs.
- EUR/USD trims losses as German PMIs are released.
- Eurozone PMI seems to be mixed but signals continued growth.
The release of the May French PMIscaused EUR/USD to shed 16 pips to trade at 1.3662 from 1.3673, ahead of the data. Both, manufacturing and services PMI in France fell short of expectations coming in at 49.3 vs 51.0 and 49.2 vs 50.2. A reading, which may have raised concerns over the outlook for the Eurozone’s second largest economy given a reading below 50 signals contraction.
Shortly after the French PMI figures the German manufacturing figures were released, which came in at 52.9, falling to a 6-month low. Meanwhile, the services industry in the Eurozone’s largest economy rose to a 35 month high of 56.4 from 54.7. Overall, a reading above 50.0 on the index signals expansion.
Finally, 30 minutes later the release of the Eurozone’s PMI data left EUR/USD little-changed. The figures were mixed with the Eurozone’s manufacturing and services PMI coming in at 52.5 vs 53.2 and 53.5 vs 53.0 respectively. Additionally, the Composite Index, which is seen as a key gauge for economic growth, came in at 53.9 matching economists’ expectations.
EUR/USD 5 Minute Chart
Source: FXCM Market scope
Edward Hyon, DailyFX Research Team
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