Services PMI Figures Deliver EUR Support

It was a busy start to the European session, with service sector PMIs from Italy and Spain in focus. Finalized June service and composite PMIs for France, Germany, and the Eurozone were also due out.

The Member States

In June, Spain’s services PMI rose from 59.4 to 62.5, with Italy’s services PMI increasing from 53.1 to 56.7.

Economists had forecast PMIs of 60.5 and 55.5 respectively.

For France, the services PMI rose from 56.6 to 57.8, which was up from a prelim 57.4.

Germany’s services PMI increased from 52.8 to 57.5, which was down from a prelim 58.1.

The Eurozone Composite

For the Eurozone, the services PMI increased from 55.2 to 58.3 in June, which was up from a prelim 58.0.

For June, the Composite PMI came in at a 15-year high 59.5. This was up from a May 57.1 and a prelim 59.2.

According to the finalized survey,

• The private sector economy expanded at the fastest pace for 15-years in June.
• Support came from a marked increase in output across both service and manufacturing.

By Country,

• Ireland ranked 1^st, with a 2-month low Composite PMI of 63.4, followed by Spain. In June, Spain’s Composite PMI surged to a 256-month high 62.4.
• Germany ranked 3^rd, with a 123-month high 60.1, followed by Italy and then France. Both saw their respective composites reach 41-month highs at the end of the quarter.

The Details,

• Income new business across the private sector grew at the strongest pace for 21-years.
• Staffing levels were increased for a 5^th consecutive month, with the rate of expansion the highest since the start of 2018.
• Confidence in the outlook improved to its highest level ever recorded.
• Cost pressures remained a concern, however.
• As a result of a sharp rise in operating expenses, output charges rose to the sharpest degree in nearly 19-years of available data.

Market Impact

Ahead of today’s stats, the EUR had risen to a pre-stat high $1.18703 before falling to a pre-stat and current day low $1.18516.

In response to today’s stats, the EUR fell to a low $1.18537 before rising to a post-stat and current day high $1.18734.

At the time of writing, the EUR was up by 0.05% to $1.18714.

Next Up

With the U.S markets closed today, there are no material stats from the U.S to provide the markets with direction later in the day.