News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • NY Fed's GDP Nowcast model sees US Q1 GDP at 6.9% vs. 6.78% in prior week. #Fed $USD
  • Hey traders! Wrap up your week with a market update from @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/zOiAQGMNzY
  • $EURGBP has strengthened today, rising back above the 0.8700 level for the first time in a week. The pair is trading near the highs set in mid April and late February. $EUR $GBP https://t.co/RSkMhvLQEQ
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.31% 🇦🇺AUD: 0.29% 🇨🇦CAD: 0.10% 🇬🇧GBP: 0.06% 🇨🇭CHF: 0.06% 🇯🇵JPY: -0.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/OODkBySEaS
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: US 500: 0.66% Wall Street: 0.42% FTSE 100: -0.13% France 40: -0.28% Germany 30: -0.46% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/0PTPoUF2Jz
  • #Gold has slipped to its lowest level since Tuesday today. After meeting resistance around 1,795 this morning, the precious metal fell back to trade near the 1,770 level. $XAU $GLD https://t.co/tOiSk0n6t5
  • Biden’s proposed tax hike sees investors unload profitable assets. Bitcoin intensifies losses, falls below $50,000. Get your $btc market update from @Daniela here:https://t.co/pkHFvFotbz https://t.co/1R7T4HpfQX
  • With the US data beating expectations, we have all of the major developed world economies reporting April PMIs with a significant improvement in economic activity for the current month. Seems only black swans and regulations can stop the train now... https://t.co/HpOW5ul5YW
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.92% Gold: -0.24% Silver: -0.29% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/ck2iRms5Hp
  • Heads Up:💶 ECB President Lagarde Speech due at 14:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-04-23
Euro Drops as PMI Data Point to Still Sluggish Inflation

Euro Drops as PMI Data Point to Still Sluggish Inflation

Oliver Morrison, Analyst

Talking Points:

  • PMI data reveal the European economy is in rude health
  • But inflation is not rising enough and is unlikely to satisfy ECB policymakers
  • The Euro is under pressure against G20 peers, but European stocks have gained

See the DailyFX Economic Calendar and see what live coverage for key event risk impacting FX markets is scheduled for the week on the DailyFX Webinar Calendar.

The Euro is dropping against its G20 peers despite today’s PMI data showing the Euro-Zone economy firing on all cylinders. However, inflation is only creeping up slowly.

The Euro-Zone Composite PMI climbed sharply to a 70-month high in February, from 54.4 to 56.0, and stronger than the consensus forecast of a slight fall to 54.3, suggesting that economic growth picked up pace in Q1. Growth accelerating in both manufacturing and services to rates not seen since early 2011.

The flash composite output index rose to a 69-month high of 56.2 in February from 54.1 in January. While manufacturing growth remained unchanged, the services activity index rose to 56.7 from 54.1 in the prior month. The country breakdown also revealed sharp rises in the German and French Composite PMIs. The German index improved from 54.8 to 56.1. The French PMI recorded an even sharper climb from 54.0 to 56.2.

The future output index meanwhile increased to its highest level in the series’ four-year history, indicating that European companies expect February’s strength to be maintained over the next 12 months.

However, the output prices index increased only marginally, suggesting that inflationary pressures in the region are increasing slowly. ECB policymakers will thus not yet be convinced that recent signs of a pick-up in activity will translate into sustained upward pressure on inflation.

That fact is heaping selling pressure on the single currency in the London trading session. EURUSD is down to 1.0537, a drop of 0.0075 on the day, also helped by Dollar strength as Fed policy makers comment on the possibility of a March rate hike in the US. EURGBP has dropped 0.0031 to 0.8488. EURJPY trades at 119.78, down 0.25.

The Euro is also feeling the burden of the rising political risks in the region. A fresh poll Monday showed leader Marine Le Pen gaining ground on her main election rivals for the French election.

The poll put the far-right candidate, who wants to scrap the Euro and replace it with a basket of new national currencies, 16 points behind centrist Emmanuel Macron, down from 20 points previously for a potential second-round run off scheduled for May. Le Pen was 12 points behind the conservative candidate Francois Fillon, from 14 points previously.

That’s rattled bond markets, too, with the premium investors demand to hold French bonds instead of German debt rising Monday to its highest since late 2012.

European stocks have, however, edged higher on the encouraging PMI data. The CAC 40 has gained 5.31 to trade at 4,870.30. The DAX 30 has climbed half a per cent to 11,887.00.

EURUSD 15-Minute Chart (February 21 2017, Intraday)

Euro Drops as PMI Data Point to Still Sluggish Inflation

--- Written by Oliver Morrison, Analyst

To contact Oliver, email him at oliver.morrison@ig.com

Don't trade FX but want to learn more? Read the DailyFX Trading Guides

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES