Data on business activity in the manufacturing sector (PMI) in Europe

• Spanish Manufacturing PMI (June), fact 47.9, forecast 49.5.
• Business PMI of Switzerland from SVME (June), fact 47.7, forecast 48.9.
• Italian Manufacturing PMI (June), fact 48.4, forecast 48.8.
• French Manufacturing PMI (June), fact 51.9, forecast 52.0.
• German Manufacturing PMI (June), fact 45.0, forecast 45.4.
• Germany’s employment change (June), fact -1K, forecast -3K.
• Germany’s unemployment rate (June), fact 5.0%, forecast 5.0%.
• Eurozone business activity index (PMI) (June), fact 47.6, forecast 47.8.
• UK Manufacturing PMI (June), fact 48.0, forecast 49.2.

European manufacturing activity (PMI) data slowed down in June for all key countries. This put additional pressure on European currencies and stock indices. The main driver of the market is risk reduction about the trade war. This overlaps PMI data for Europe. But It is worth noting that the indicator of business activity in the manufacturing sector (PMI) in Europe and the eurozone remains restrained downward.

Fig. 1. Eurozone business PMI (June)

 

The EUR/USD pair remains under the pressure from growing optimism, limited to oversold and trading channel. At the same time, the main decline in this pair may be aggravated by weak PMI data. The main pressure on the euro is from the growth of the American dollar. Support levels: 1.1300 and 1.1280, resistance: 1.1350 and 1.1380.

Fig. 2.  EUR/USD chart. Current price – 1.1330

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