Euro Weakens Post Euro Area PMI
Today market analysis on behalf of Robert Brown, Head of Strategic Development at MAS Markets.
June 21, 2024 (Investorideas.com Newswire) The euro continues to decline as weaker-than-expected June PMI figures have sparked concerns about the Euro Area's economic health and prompted speculation of further ECB interest rate cuts. Flash PMIs showed a contraction in manufacturing as the Eurozone index fell from 47.3 to 45.6, below the expected 47.9 points. Germany's PMI dropped from 45.4 to 43.4, missing the market consensus of 46.4 points, while France saw a decline from 46.4 to 45.3, against expectations of 46.8 points. Unexpected slowdowns also occurred in the services sectors, with Germany's index decreasing from 54.2 to 53.5 and France's from 49.3 to 48.8 points. These downturns weighed on the Euro, keeping the currency near seven-week lows. This comes in addition to a start in interest rate cuts from the ECB.
Trading volume in Euro FX Futures spiked ahead of today's PMI data release in the Euro Area. Despite steady volatility, the euro-dollar has maintained a monthly trading range of 202 to 283 pips since January. Open interest on the Euro Futures contract declined from a recent peak of nearly 810,000 contracts, settling at 634,412 for the most actively traded September contract.
The currency could see an increase in volatility during next week as traders react to new data on business and consumer confidence in Germany and the euro area as well as comments from ECB members. The results of French treasury bond auctions could also affect sentiment toward the euro amid local political concerns.
More Info:
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.
More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/
Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp