Final PMIs confirm manufacturing recession in Europe

Economic calendar for the European morning trade today was dominated by releases of manufacturing PMIs from the Old Continent. However, a number of those were revisions to July data and therefore were not expected to trigger any significant market moves.

Data from Spain and Poland missed expectations slightly while the Italian index came in slightly better than expected. Index from France was revised from 44.5 in flash reading to 45.1. Meanwhile, indices from Germany as well as the whole euro area matched readings suggested by preliminary releases. A key takeaway is that the manufacturing sector index in every major European economy remains below the 50 points threshold, meaning that it is contracting. 

Manufacturing PMIs for July

• Poland: 43.5 vs 44.5 expected (45.1 previously)

• Spain: 47.8 vs 48.2 expected (48.0 previously)

• Italy: 44.5 vs 44.3 expected (43.8 previously)

• France: 45.1 vs 44.5 in first release (46.0 previously)

• Germany: 38.8 vs 38.8 in first release (40.6 previously)

• Euro area: 42.7 vs 42.7 in first release (43.4 previously)

As readings did not show any major deviations from preliminary releases, there was also no major market reaction. EURUSD is trading more or less flat compared to an hour ago when PMI data started to be released. European equity indices, like for example DE30, continued overnight move lower.

While EURUSD did not experience any major reaction to PMI revisions, the pair slowly continues to move lower and break below 1.10 support zone today. Source: xStation5