This is the European Currency Reaction Following the Release of PMI Data! - Kakiforex.com - Financial Market Media No. 1 in the World This is the European Currency Reaction Following the Release of PMI Data! This is the European Currency Reaction Following the Release of PMI Data!
InstaForex

June 23, 2021

This is the European Currency Reaction Following the Release of PMI Data!

 The European session market has seen a mixed reading in manufacturing and services PMI data published from the European Zone and the UK in June.


European Zone business activity grew at the fastest rate in 15 years this month following more easing of restrictions in most European member states, particularly in the hospitality sector.


Meanwhile, the manufacturing sector was unchanged from a record high in May, supported by increases in production and employment at the highest level since 2018.


Germany, which is the largest economy in Europe, showed encouraging growth in both sectors, especially in business activity which showed a significant increase.


However, the situation is different in France, where the manufacturing and services sectors have each strayed from market expectations. However, the numbers recorded still showed a positive development in June.



This encouraging reading has prompted the euro to rise higher against the US dollar around the price of 1.19400.


Moreover, the market was also adorned with the publication of PMI data from the UK which showed unexpected growth, with both sectors showing declines in June.


However, expansion in both sectors remained strong, in line with the gradual easing of Covid-19 restrictions.


According to the Chief Business Economist at IHS Markit, there are some signs that expansion has peaked, as output growth and new orders are slightly slower than in the past month.


The pound traded steady at 1.3970 against the USD while the market was still scrutinizing the newly released data just now.