Today the Euro lost significant ground after the latest Purchasing Managers’ Index (PMI) data was released from IHS Markit. The results show that economic activity is needed in two major European economies, that of France and Germany, and also in the Eurozone in general.
With regard to the French economy, the PMI for the industrial sector registered a value of 49.8 opposed to the anticipated 51 figure or above. Concerning the services sector, PMI also fell below expectations, registering at 48.7, which is below the forecast number of 50.6. These declines in French economic activity can be explained by the significant drop in new orders and exports. Due to these results, economic agents are less confident about the overall economic outlook, compared to their January outlook.
The data which refers to the German economy also show lower numbers than expected. According to the report “March saw private sector business activity in Germany rise only modestly and at the slowest rate for almost six years.”
The PMI for the industrial sector was at 44.7, well below the 48 that was anticipated by the market and the services sector ended up with a value of 54.9 according to the estimates. The index also showed that Germany has shown the lowest employment growth since May 2016. The reason for this significant decline is mainly due to the drop in exports, mainly in the automotive sector. Economic agents’ outlook for 2019 is now less confident.
With regard to the Euro Zone as a whole, the PMI for the services sector registered the expected value of 52.7, while the results for the industrial sector were below expectations of 49.5 and came to 47.6.
As a result of these figures, the Euro has lost ground and it depreciated against the Dollar.
by 80/90 pips, which corresponds to a devaluation of 0.8 percent.
To access the official IHS Markit releases, see the following links:
Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or an investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2022 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.