Yahoo Finance April Prelim Private Sector PMIs Weigh on the EUR
It was a busy start to the European session this morning, with prelim private sector PMIs for France, Germany, and the Eurozone in focus.
The numbers were out following Fed Chair Powell’s overnight speech that drove Dollar demand and sank U.S equities.
Member State Private Sector PMIs
According to prelim figures, the French manufacturing PMI rose from 54.7 to 55.4, with the services PMI increasing from 57.4 to 58.8. Economists had forecast PMIs of 53.0 and 56.5, respectively.
Germany’s manufacturing PMI fell from 56.9 to 54.1 versus a forecasted 54.5. The services PMI increased from 56.1 to 57.9 versus a forecasted 55.5.
Germany Weighs on Euro Area Manufacturing Sector Growth
For the Eurozone, the manufacturing PMI fell from 56.5 to a 15-month low of 55.3, while the services PMI increased from 55.6 to 57.7. Economists forecast PMIs of 54.7 and 55.0, respectively.
As a result, the Composite PMI increased from 54.9 to a 7-month high of 55.8 versus a forecasted 53.9.
According to the prelim April survey,
Economic growth picked up in April, supported by an easing of COVID-19 restrictions, which supported the services sector.
Inflows of new business in the service sector accelerated at the fastest pace since August.
Manufacturers faced ongoing supply chain issues that led to production curbs.
Demand also softened across the manufacturing sector in April, with weak demand attributed to soaring prices, the cost of living, and signs of increased risk aversion due to the war in Ukraine.
Across the euro area, employment rose at the sharpest pace in five months.
Supply chain constraints placed further upward pressure on prices, with Germany seeing input cost inflation hitting a new record high.
As a result, there were new record rates of inflation for both goods and services.
Despite all the negatives, business optimism improved in April, supported by improved sentiment across the services sector.
Market Impact
Ahead of the stats, the EUR hit a morning high of $1.08517 before hitting reverse.
In response to today’s figures, the EUR rose to a pre-stat high of $1.08172 before falling to a post-stat and current-day low of $1.07905.
At the time of writing, the EUR was down by 0.37% to $1.07934.
Next Up
Prelim March private sector PMIs from the U.S. and ECB President Christine Lagarde will be in focus later today.
This article was originally posted on FX Empire
