Flash PMI indices for April from France and Germany were released at 8:15 am BST and 8:30 am BST, respectively.
French reading was mixed - services index showed a big and unexpected improvement while the manufacturing sector showed large and also unexpected deterioration. Deterioration in manufacturing, which reached 35-month low, can be explained with massive employee strikes that are occuring in France in response to new pension reform. Improvement in services is puzzling but we will have to wait for the final release for details.
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Create account Try a demo Download mobile app Download mobile appGerman reading was mixed on the same note - miss in manufacturing and beat in services. However, in case of German data, strikes cannot be used as an explanation so we will have to wait for final data with sector/industry breakdown.
France
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Manufacturing: 45.5 vs 47.9 expected (47.3 previously)
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Services: 56.3 vs 53.5 expected (53.9 previously)
Germany
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Manufacturing: 44.0 vs 45.6 expected (44.7 previously)
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Services: 55.7 vs 53.3 expected (53.7 previously)
EUR ticked higher following the release of French data but the move was minimal. Indices also moved higher in a knee-jerk move but have later turned lower. Those moves were magnified after German release with EURUSD adding to previous gains and DE30 deepening slide.
DE30 deepens drop below 15,900 pts price zone after mixed PMIs from France and Germany. Source: xStation5
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