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07:50 France Services PMI (Finally) May 44.3 44.3 44.3
07:55 Germany Services PMI (Finally) May 49.8 49.8 49.7
08:00 Eurozone Services PMI (Finally) May 47.5 47.5 47.2
08:30 United Kingdom Purchasing Manager Index Services May 52.9 53.1 54.9
09:00 Eurozone Retail Sales (MoM) April -0.2% -0.2% -0.5%
09:00 Eurozone Retail Sales (YoY) April -2.4% -0.6% -1.1%
09:00 Eurozone GDP (QoQ) (Revised) Quarter I -0.2% -0.2% -0.2%
09:00 Eurozone GDP (YoY) (Revised) Quarter I -1.0% -1.0% -1.1%
Euro retreated from highs against the dollar under pressure data on the reduction of GDP, weak economic activity and a fall in retail sales. Eurozone economy contracted by 0.2% in the first quarter compared with the previous quarter, as originally expected, according to the second estimate by Eurostat. Recession, so lasts for the sixth quarter. Last sequential decline follows a 0.6% strength drop in the fourth quarter of 2012. In annual terms, gross domestic product fell by 1.1%, slightly higher than the 1% decline according to preliminary estimates from May 15. GDP fell by 1% in the fourth quarter of last year.
Economic activity in the euro area continued to decline in May. It joins a list of attributes, svidetelstvyyuschih that the prolonged slump in the euro area will continue in the near future. However, the positive signals from Germany and Spain give up hope that the situation will stabilize. According to the company Markit, released on Wednesday, the composite Purchasing Managers Index (PMI) euro zone in May rose to 47.7 against 46.9 in April. This index coincided with advanced.
According to the latest Eurostat data, retail sales in the eurozone fell in April, the third month in a row. Sales fell by 0.5% in the month dimension, which is faster than the 0.2% drop, which was reported in March. Economists had forecast a drop of 0.2%. Sales of food, beverages and tobacco products fell by 2% compared with the previous month, while the trade of non-food items, with the exception of car fuel, increased by 0.6%. On an annual basis, total retail sales fell by 1.1% compared with 2.2% ethyl drop in March. The decline was greater than the 0.8% drop forecast by economists.
The pound rose after the UK services PMI showed strong growth. Activity in the UK service sector, which occupies a dominant position in the national economy in May grew at the fastest pace in more than a year. This pickup in activity is likely to continue, as new orders increased most rapidly in three years. These are the results of a monthly survey conducted by Markit and the Chartered Institute of Purchasing & Supply.
Increased activity in the services sector - the strongest signal yet that the recovery that began in the 1st quarter, should continue in the 2nd quarter onwards. This makes it highly unlikely the Bank of England to provide additional economic stimulus at the meeting, which will end on Thursday.
Purchasing Managers Index (PMI) for the service sector rose in May to 54.9, its highest level since March 2012, against 52.9 in April. Value exceeded the forecasts of economists who had expected growth of the index to 53.1.
The yen rose against the dollar after today Japanese Prime Minister Abe outlined the next steps of its plan to stimulate the economy. During his speech, he said that will create certain economic areas to attract foreign investors, the annual income will be increased by 3%, and in the electric power sector will be lifted all restrictions. Abe drew attention to measures aimed at stimulating long-term growth. Japanese Prime Minister said that revenue growth was an important event, because "the purpose of the growth strategy - is primarily the creation of jobs for active people and increase wages for those who work a lot."
EUR / USD: during the European session, the pair fell to $ 1.3052
GBP / USD: during
the European session, the pair rose to $ 1.5371
USD / JPY: during
the European session, the pair fell to Y99.27
At 12:15 GMT the United States will change in the number of employees from ADP in May. At 12:30 GMT Canada will publish the change in the volume of building permits issued in April. In the U.S., at 12:30 GMT will change in the level of labor productivity in the non-manufacturing sector for the 1st quarter, a 14:00 GMT - ISM composite index of non-manufacturing activity in May and the change in volume production orders for April. At 18:00 GMT will publish economic survey of the Fed's regional "Beige Book."
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