Summary:
- French manufacturing PMI jumps from 50.6 pts to 52 pts in June
- German data comes in better-than-expected but manufacturing gauge remains in contraction territory
- EURUSD tests 1.1310 handle immediately after the release
The French PMI indices released at 8:15 am BST were expected to tick just slightly higher in both cases. However, the actual reading showed a significant improvement with manufacturing index jumping from 50.6 pts to 52 pts and the service gauge moving from 51.5 pts to 53.1 pts. However, when it comes to the eurozone it is the German data that is most closely watched by the markets. Luckily for EUR bulls, the German data also came in better-than-expected. Manufacturing index jumped from 44.3 pts to 45.4 pts (expected 44.6 pts) and the services gauge moved from 55.4 pts to 55.6 pts (expected drop to 55.2 pts). While it certainly is an improvement, one needs to remember that the German manufacturing PMI is still deep into the contraction territory. Nevertheless, traders seem to play it down for now and the EURUSD currency pair is testing the 1.1310 handle following the release.
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EURUSD tries to break out of the recent narrow trading range. The pair pushed above the 1.1310 handle in a knee-jerk move following the release and in case the sentiment remains upbeat, the pair may look towards June’s high in the vicinity of 1.1350 handle. Source: xStation5
