Mixed Batch of Eurozone PMI Data Leaves Euro Unscathed | Webinar
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EUR price, news and analysis:
- The Euro held its ground Tuesday after figures showed a healthier Eurozone manufacturing sector in July than forecast but a weaker than predicted services sector.
- Now the focus turns to Thursday’s meeting of the ECB, where Eurozone monetary policy settings will all be left where they are.
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EURUSD shrugs off PMI data
The Euro was little changed Tuesday after purchasing managers’ indexes for the Eurozone in July showed the manufacturing sector expanding more quickly than expected but relative weakness in services. Looking ahead, the key event for the region this week will be Thursday’s meeting of the European Central Bank’s Governing Council, which will almost certainly leave all its settings where they are.
In this webinar, I looked at the numbers, the Euro and what to expect from the ECB on Thursday.
EURUSD Price Chart, Five-Minute Timeframe (July 24, 2018)
The manufacturing PMI climbed to 55.1 from 54.9 in June, well above both the 50 mark that separates expansion from contraction and the predicted 54.6. However, the services PMI eased to 54.4 from 55.2, well below the forecast 55.0. The composite PMI slipped to 54.3 from 54.9, under the expected 54.8.
Taken together, the numbers suggest Q3 GDP growth of 0.4% according to IHS Market, which compiles the data. As for the Euro, that will likely be unaffected by Thursday’s ECB meeting, with EURUSD likely to react more to events in the US, where Friday’s GDP figures are the key economic data released this week.
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--- Written by Martin Essex, Analyst and Editor
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.