European PMI Figures Disappoint – ECB Rate Cut Sentiments Strengthens!
Arslan Butt • 1 min read
What’s up, fellas.
As you know the market today was all about Eurozone’s manufacturing and services PMI figures which disappointed the market with worse than expected economic releases.
Recalling FX Leaders July 24 Economic Events Outlook, we discussed six manufacturing and services PMI figures from the Eurozone, which were expected to deliver mixed results. Surprisingly, most of them missed the forecast and slipped dramatically lower.
French Flash Services PMI slipped to 52.2 missing the forecast of 52.7 and previous month’s data of 52.9.
French Flash Manufacturing PMI slipped to 50.0 versus 51.6 forecasts and the previous actual figure of 51.9.
German Flash Manufacturing PMI – Now that’s something which shook the single currency Euro and dented its demand. Germany flash manufacturing PMI collapsed to 43.1 from 45.0, as weak foreign demand was apparent.
German Flash Services PMI – Likewise, the services PMI slid to 55.4 from 55.8. This took the composite to 51.4, matching its cyclical low in March, down from 52.8 in June.
Disappointing flash PMI pushed an already depressed Euro lower ahead of tomorrow’s ECB meeting. With that, the ECB President Mario Draghi gets an excuse to keep the interest rate lower, or he may also go for cutting the interest rates, pushing it into the negative zone.