Business Activity Data (PMI) in Europe

• Business PMI of Switzerland from SVME (May), fath 48.6, forecast 49.1.
• Italian Manufacturing PMI (May), fact 49.7, forecast 48.6.
• French Manufacturing PMI (May), fact 50.6, forecast 50.6.
• German Manufacturing PMI (May), fact 44.3, forecast 44.3.
• Eurozone business activity index (PMI) (May), fact 47.7, forecast 47.7.
• UK Manufacturing PMI (May), fact 49.4, forecast 52.0.

The data on business activity in the manufacturing sector (PMI) in Europe were mostly restrained negative. So, business activity in the eurozone, with the exception of Italy, coincided with forecasts. The figure for Italy unexpectedly accelerated, showing a recovery from four-year lows. The overall figure for the euro area was very restrained and remained near eight-year lows. UK data has deteriorated, showing a slowdown.

Fig. 1. Eurozone PMI chart 

The market reaction to the publication of data on business activity in Europe was very restrained. The main driver of the market is trading risks that affect the dynamics of the US dollar and the market as a whole. The dynamics of the EUR/USD pair is limited by the side channel from 1.1190-1.1200 to 1.1160-50, actually correcting against the Friday movement.

Fig. 2. EUR/USD chart. Current price – 1.1170

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Hanzenko Anton

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