• Home
  • Analytics
  • Market News
  • European session review: EUR strengthens on better-than-expected eurozone PMIs and improved risk appetite

Market news

23 June 2020

European session review: EUR strengthens on better-than-expected eurozone PMIs and improved risk appetite

TimeCountryEventPeriodPrevious valueForecastActual
07:15FranceServices PMIJune31.144.250.3
07:15FranceManufacturing PMIJune40.64652.1
07:30GermanyServices PMIJune32.64245.8
07:30GermanyManufacturing PMIJune36.641.544.6
08:00EurozoneManufacturing PMIJune39.444.546.9
08:00EurozoneServices PMIJune30.54147.3
08:30United KingdomPurchasing Manager Index Manufacturing June40.74550.1
08:30United KingdomPurchasing Manager Index ServicesJune29.04047


EUR rose against most other major currencies in the European session on Tuesday, helped by better-than-expected PMI readings and improvement in broader market sentiment.

Investors' risk appetite recovered after the White House trade adviser Peter Navarro stated that his earlier remarks that the trade deal with China was “over” were taken "wildly out of context." Meanwhile, the U.S. President Donald Trump reaffirmed that the U.S. trade deal with China was "fully intact". "Hopefully they will continue to live up to the terms of the agreement," said on Twitter. This reduced volatility in markets as well.

The flash data from IHS Markit revealed that Germany's private sector showed further signs of a turnaround following a record downturn in activity earlier in the second quarter. The Flash Germany Composite Output Index jumped to 45.8 in June from 32.3 in the previous month. This was the highest reading in four months and above economists' forecast of 44.2. The survey highlighted the effects of easing lockdown restrictions and also indicated an improvement in business confidence. 

Meanwhile, France's private sector activity rose for the first time in four months during June as restrictions related to dealing with the COVID-19 pandemic continued to be lifted. Flash France Composite Output Index increased to 51.3 this month from 32.1 in May. That was above economists' estimate of 46.3. 

Overall, the eurozone economic downturn eased markedly for a second successive month in June as lockdowns to prevent the spread of the COVID-19 outbreak were further

relaxed. The flash IHS Markit Eurozone Composite PMI rose to 47.5 in June from 31.9 in May. This was the highest reading in four months and exceeded economists' forecast of 42.4.

Investors also continued to expect the European leaders to reach compromise or agreement on the recovery fund. A spokesperson for the European Union's (EU) Brussels headquarters, Barend Leyts, announced earlier today that the EU heads would meet in Brussels on July 17-18 to discuss the EU recovery plan and long-term budget.

Open Forex Demo Account
I understand and accept the Privacy Policy and agree that my name and contact details can be used by TeleTrade to contact me about the information I have selected.
23 International Awards
Have a question?

We are ready to assist you in every step of your trading experience
by providing 24/5 multilingual customer support.

Follow us

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. 76% 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.

© 2011-2020 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 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.

Please read our full Terms of Use.

To maximise our visitors' browsing experience, TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies. You may change your cookie consent or view our cookie declaration here.

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.

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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.