Service Sector Buoyed While Manufacturing Conditions Worsen
According to S&P Global, “Eurozone economic growth accelerated in April as a rebounding service sector, benefitting from loosened COVID-19 restrictions, helped compensate for a near stalling of manufacturing output”. Overall, despite rising input costs and general inflation concerns, the manufacturing data printed above expectations of 54.7
- (Composite) April Flash Euro Zone PMI at 55.8 vs 54.9 in March
- (Services) April Flash Euro Zone PMI at 57.7 vs 55.6 in March
- (Manufacturing) April Flash Euro Zone PMI at 55.3 vs 56.5 in March
Readings above 50 tend to signal optimism and industry expansion while reading below 50 indicate a contraction.
![](https://a.c-dn.net/b/0sgz4H/EZ-Economy-Pulling-in-Different-Directions-as-Factories-Struggle-but-Services-Shine-RS_body_Picture_2.png)
Customize and filter live economic data via our DaliyFX economic calendar
![](https://a.c-dn.net/b/0YPMDo/logo-stripe.png)
![Trading Forex News: The Strategy](https://a.c-dn.net/b/2hbygv/500x707Advanced-TradingForexNewsStrategy.png)
![Trading Forex News: The Strategy](https://a.c-dn.net/b/2hbygv/500x707Advanced-TradingForexNewsStrategy.png)
In the moments that followed the release, EUR/USD continued to trend lower. The bearish decline had stalled in the leadup to the release.
EUR/USD 5-Minute Chart
![](https://a.c-dn.net/b/4lWBL4/EZ-Economy-Pulling-in-Different-Directions-as-Factories-Struggle-but-Services-Shine-RS_body_Picture_3.png)
Source: TradingView, prepared by Richard Snow
There may be some added euro volatility later today as Christine Lagarde is due to speak. Yesterday, she joined Jerome Powell at a panel discussion hosted by the IMF, with Powell’s comments stoking already aggressive rate hike expectations, which boosted the dollar and lead to a massive reversal in EUR/USD.
EUR/USD 4-Hour Chart Highlighting Bearish Turnaround
![](https://a.c-dn.net/b/3SUdZD/EZ-Economy-Pulling-in-Different-Directions-as-Factories-Struggle-but-Services-Shine-RS_body_Picture_1.png)
Source: TradingView, prepared by Richard Snow
Trade Smarter - Sign up for the DailyFX Newsletter
Receive timely and compelling market commentary from the DailyFX team
--- Written by Richard Snow for DailyFX.com
Contact and follow Richard on Twitter: @RichardSnowFX