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The euro rose against the dollar mildly, returning to the level of opening of the session, which was caused by the publication of weak US data. The Markit Economics reported that the preliminary manufacturing PMI fell to 50.5 in May from 50.8 in April, giving way to increasing expectations to 51.0. It was the lowest level since September 2009. The decrease was due to lower production and weaker growth in new orders. "PMI manufacturing data cast doubt on the ability of the US economy to rebound from a disappointing start of the year in the second quarter," - said the chief economist at Markit Chris Williamson.
In the course of trading and continued to influence mixed indicators on business activity in the euro area. Preliminary results of a survey by Markit showed that private sector growth in the euro zone eased to 16-month low in May. Composite PMI fell unexpectedly to 52.9 in May from 53 in April. According to forecasts, the index is expected to grow to 53.2. Managers' Index for the service sector purchases remained at 53.1, while experts waited increasing to 53.3. The manufacturing PMI fell to 51.5 from 51.7 in April. Economists had expected the index to improve to 51.9. Chris Williamson, chief economist at Markit, said: "The disappointing PMI data for May suggest that robust economic growth, which saw in the first quarter, will be temporary PMI index indicates a GDP growth of only 0.3 percent in the second quarter." . In addition, it became known that the French private sector growth improved to 7-month high in May. The composite output index rose to 51.1 in May, a 7-month high, from 50.2 in April. in the service sector Purchasing Managers Index rose to 51.8, while, according to forecasts, it was to remain at 50.6, as it was registered in April. The manufacturing PMI reached 48.3 against 48 in April. It was below the expected reading of 48.8. Another report showed that Germany's private sector activity grew at a faster pace in May. The composite output index rose to a 5-month high of 54.7 in May from 53.6 in April. Manufacturers and service providers reported higher growth rates, which some respondents attributed to the processes of work in progress and the increase in new orders.
The pound rebounded against the dollar, reaching the opening level. Since today, Britain has not published any reports on the course of trading influenced speculation about Brexit. According to the latest information agency TNS, the results of the online survey showed that output supporters of EU staff ahead of opponents Brexit: 41% in favor of withdrawal from the EU, 38% - against Brexit, and 21% - difficult to answer. Later this week, investors will be watching the consumer confidence index of the UK, as well as the report on GDP. Given the economic slowdown, the rise of political uncertainty and the decline in the index GfK in the last month, experts predict that the consumer confidence index drops again. Meanwhile, the second estimate of GDP for the 1st quarter, is likely to confirm the early predictions of slowing economic growth. According to expert estimates, GDP grew by 0.4% after rising 0.6% in the 4th quarter of 2015. In annual terms, GDP growth is expected to stabilize at 2.1%.
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