April Prelim Private Sector PMIs Weigh on the EUR

div classBodysc17zpet90 cdBBJodivpIt was a busy start to the European session this morning, with prelim private sector PMIs for France, Germany, and the Eurozone in focus.p

pThe numbers were out following Fed Chair Powells overnight speech that drove Dollar demand and sank U.S equities.pdivdivdiv classBodysc17zpet90 cdBBJodiv

h2 idmemberstateprivatesectorpmisMember State Private Sector PMIsh2

pAccording to prelim figures, the French manufacturing PMI rose from 54.7 to 55.4, with the services PMI increasing from 57.4 to 58.8. Economists had forecast PMIs of 53.0 and 56.5, respectively.p

pGermanys manufacturing PMI fell from 56.9 to 54.1 versus a forecasted 54.5. The services PMI increased from 56.1 to 57.9 versus a forecasted 55.5.p

divdivdiv classBodysc17zpet90 cdBBJodivh2 idgermanyweighsoneuroareamanufacturingsectorgrowthGermany Weighs on Euro Area Manufacturing Sector Growthh2

pFor the Eurozone, the manufacturing PMI fell from 56.5 to a 15month low of 55.3, while the services PMI increased from 55.6 to 57.7. Economists forecast PMIs of 54.7 and 55.0, respectively.p

pAs a result, the Composite PMI increased from 54.9 to a 7month high of 55.8 versus a forecasted 53.9.p

pAccording to the prelim April a hrefhttps:www.markiteconomics.comPublicHomePressReleasedcae0455e05f469b81ae947bf6a86f54 relnofollow noopener noreferrer target_blanksurveya,p

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liEconomic growth picked up in April, supported by an easing of COVID19 restrictions, which supported the services sector.li

liInflows of new business in the service sector accelerated at the fastest pace since August.li

liManufacturers faced ongoing supply chain issues that led to production curbs.li

liDemand also softened across the manufacturing sector in April, with weak demand attributed to soaring prices, the cost of living, and signs of increased risk aversion due to the war in Ukraine.li

liAcross the euro area, employment rose at the sharpest pace in five months.li

liSupply chain constraints placed further upward pressure on prices, with Germany seeing input cost inflation hitting a new record high.li

liAs a result, there were new record rates of inflation for both goods and services.li

liDespite all the negatives, business optimism improved in April, supported by improved sentiment across the services sector.li

ul

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pAhead of the stats, the EUR hit a morning high of 1.08517 before hitting reverse.p

pIn response to todays figures, the EUR rose to a prestat high of 1.08172 before falling to a poststat and currentday low of 1.07905.p

pAt the time of writing, the a hrefhttps:www.fxempire.comcurrencieseurusdEURa was down by 0.37 to 1.07934.p

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pPrelim March private sector PMIs from the U.S. and ECB President Christine Lagarde will be in focus later today.p

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