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. See our updated Privacy Policy here.

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
More View more
Real Time News
  • So much for that Evergrande recovery. Shares of the troubled Chinese property developer are down approximately -12% today following yesterday's impressive rally (biggest in a year) https://t.co/Nome25d9Bt
  • Retail trading platform Robinhood announces hire of new Chief Compliance Officer amid regulatory scrutiny
  • There is a ridiculous number of scheduled Fed speeches on the docket next week. Powell specifically will be speaking multiple times including at an ECB hosted forum on central banking (which also has a panel with Fed, ECB, BOE and BOJ heads)
  • USD Ascending Triangle, Bullish for Q4 - #DXY chart on @TradingView https://t.co/iCnRSo9N4V
  • Credit rating agency Standard & Poor's is due to give its sovereign credit rating update on Germany today ahead of weekend national elections
  • RT @BIS_org: Since the early 1990s, changes in the #MonetaryPolicy stance have affected a rather narrow set of prices – mostly in the servi…
  • Huawei's CFO Meng Wanzhou reached deal with the US Dept of Justice to return her to China - Dow Jones
  • Cleveland Fed President Loretta Mester says: - sees US GDP in 2022 between 3.75 and 4% - Supports tapering in November and concluding over the first half of 2022 - After liftoff, accommodative policy needed for some time
  • Fed Chairman Jerome Powell doesn't comment on the growth forecast or monetary policy in his introductory remarks
  • Kansas City Fed President Esther George says: - The labor market friction is fading barring a resurgence of virus - A 'normal' economy is likely to remain elusive for some time - Asset buying effects complicate the judging rate change plan
Euro Drops as Euro-Zone PMIs Miss Expectations, Trend Intact

Euro Drops as Euro-Zone PMIs Miss Expectations, Trend Intact

Martin Essex, MSTA, Analyst

Talking Points

- The composite purchasing managers’ index for the Euro-Zone in July fell to 55.8, below both the forecast 56.2 and the previous 56.3.

- EURUSD lost ground, though its upward trend remains in place.

Check out our new Trading Guides: they’re free and have been updated for the third quarter of 2017

The Euro eased against the US Dollar Monday as the “flash” composite purchasing managers’ index for the Euro-Zone dropped in July to a six-month low of 55.8 from June’s 56.3, beneath the 56.2 predicted by analysts. That was due principally to a drop in the PMI for the manufacturing sector as the services sector held up well.

The manufacturing PMI fell to 56.8, a three-month low, from 57.4 while the services PMI was unchanged at 55.4.

“The July fall in the PMI indicates that the Euro-Zone’s recent growth spurt lost momentum for a second successive month, but still remained impressive,” noted Chris Williamson, chief economist at IHS Markit, which compiles the data.

Join me for my trading sentiment webinar at 1000 GMT. You can sign up here

“The survey data are historically consistent with GDP rising at a quarterly rate of 0.6%, cooling slightly from a pace of over 0.7% signaled for the second quarter. The slowing pace of economic growth signaled by the surveys and the accompanying easing of price pressures adds to the belief that ECB policymakers will be in no rush to taper policy, and will leave all options open until the central bank sees a clearer picture of the sustainability of the upturn,” he added.

In response to the numbers, EURUSD fell back, although as the chart below shows it was giving up some of its recent gains even before the data were published. Nonetheless, the strong upward trend in the pair remains in place.

Chart: EURUSD Five-Minute Timeframe (July 24, 2017)

Euro Drops as Euro-Zone PMIs Miss Expectations, Trend Intact

Chart by IG

--- Written by Martin Essex, Analyst and Editor

To contact Martin, email him at martin.essex@ig.com

Follow Martin on Twitter @MartinSEssex

For help to trade profitably, check out the IG Client Sentiment data

And you can learn more by listening to our regular trading webinars; here’s a list of what’s coming up

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

DISCLOSURES