Release Explanation: As an indicator of economic performance the PMI has the ability to easily affect currency valuations as Institutions re-align existing positions, or build new, on the strength of these reports. It measures the activity level of Purchase Managers, they are surveyed on production, employment, inventories, orders, delivery data. The PMI is split into reads on Manufacturing, Service, and Construction industries. A read over 50 denotes growth.
Trade Desk Thoughts: The PMI release shows the Euro-area manufacturing side of the economy contracted for the third consecutive month. The release number of 47.6 is in-line with analyst expectations of 47.5. It is thought that the strong euro recently together with the tightening cycle of the ECB contributed to the poor reads from the last few periods.
Trade Desk Thoughts: The PMI release shows the Euro-area manufacturing side of the economy contracted for the third consecutive month. The release number of 47.6 is in-line with analyst expectations of 47.5. It is thought that the strong euro recently together with the tightening cycle of the ECB contributed to the poor reads from the last few periods.
Forex Technical Reaction: The euro was unmoved by the release. Since the Asian session started, the pair has declined 50 pips and is trading just above TheLFB S1
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