Better than forecast PMI numbers failed to deliver EUR support, with the markets responding further to FED Chair Powell's hawkish comments from overnight.
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.
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.
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,
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.
Prelim March private sector PMIs from the U.S. and ECB President Christine Lagarde will be in focus later today.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.