Private Sector PMIs Give the EUR a Boost
It’s been a busy start to the day on the Eurozone economic calendar. Prelim private sector PMI figures from France, Germany, and the Eurozone were in focus this morning.
France and Germany
According to prelim figures, the French manufacturing PMI slipped from 59.3 to 59.2 in April, while the services PMI rose from 48.2 to 50.4.
Economists had forecast PMIs of 59.0 and 46.5.
From Germany, the manufacturing PMI slipped from 66.6 to 66.4 with the services PMI falling from 51.5 to 50.1.
Economists had forecast PMIs of 65.8 and 50.8 respectively.
For the Eurozone, the manufacturing PMI rose from 62.5 to a record high 63.3, with the services PMI rising from 49.6 to an 8-month high 50.3.
Economists had forecast PMIs of 62.0 and 49.1 respectively.
According to the prelim April Survey,
- The composite PMI increased from 53.2 to a 9-month high 53.7.
- At the turn of the quarter, the services sector returned to growth for the 1st time since Aug-2020.
- Following 4-months of decline, output rose for the 2nd consecutive month, with the rate of increase the 2nd largest since Sep-2018.
- New orders across the Eurozone hit the highest since Sep-2018, led by a 2nd successive record increase in new orders for manufactured goods.
- New orders for services fell for a 9th consecutive month, though came close to stabilizing.
- Employment levels across the private sector rose at the fastest pace since Nov-2018. Manufacturers reported the steepest job creation since Feb-2018, with service sector firms reporting a modest increase in staffing levels.
Ahead of the stats, the EUR had fallen to a pre-stat and current day low $1.20129 before rising to a pre-stat high $1.20370.
In response to the prelim PMI figures, the EUR rose from $1.20422 to a post-stat and current day high $1.20617.
At the time of writing, the EUR was up by 0.35% to $1.20577.
Private sector PMIs from the U.S, with the services PMI the key driver.
On the monetary policy front, ECB President Lagarde is also scheduled to speak later in the day…