Trade Desk Thoughts - Euro-Area Flash Services PMI, Euro-Area Flash Manufacturing PMI

Euro-area Flash Manufacturing PMI Actual 45.3, Expected 47.2, Previous 47.6 (Revised from 47.5)
Euro-area Flash Services PMI Actual 48.2, Expected 48.0, Previous 48.5 (Revised from 48.2)

Release Explanation: 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 European PMI service shows that both the service and manufacturing side of the economy are still in a contraction phase. This is the fourth consecutive month when the two indexes show a read below the 50.0 level, which separates contraction from growth. The read is in-line with the latest GDP read, which showed a 0.2% contraction.

Forex Technical Reaction: The euro is trading just above the neutral pivot point, after it fell 75 pips today.

The LFB-Forex.com