This morning’s PMI data has delivered a mixed picture across Europe, but a stronger-than-expected result from the UK is giving sterling some support. Focus now shifts to key labour and services reports out of the US later today.
German and French PMI Results Mixed
Germany and France kicked off the day’s economic releases with PMI data that painted a mixed picture of economic activity.
While some sectors showed modest improvement, others lagged, offering little in the way of clear direction for investors.
Eurozone PMI Improves, But Euro Unmoved
The broader Eurozone PMI reading came in positive, indicating some recovery across the bloc.
However, the euro failed to gain traction on the back of the data, as markets appear to be awaiting stronger signs of sustained momentum before shifting sentiment.
UK PMI Surprises to the Upside
In contrast, the UK PMI figures were more upbeat.
The latest numbers showed expansion into the 50s, surprising to the upside by 0.7 percentage points compared to last month’s reading of 49.
This improvement points to renewed economic momentum and may give sterling a modest lift heading into the afternoon session.
US Employment and Services Data in Focus
Later today, attention turns to two important US economic indicators:
- The ADP National Employment Report, offering an early snapshot of private sector job growth
- The ISM Non-Manufacturing Survey, a key gauge of the health of the US services sector
These releases will help shape expectations for the US economy and Federal Reserve policy, particularly after recent signs of softening in certain sectors.
Keep Your Business Informed with Qu Money
With mixed global data and high-impact US releases on the horizon, it’s more important than ever to stay agile in currency markets.
For expert insight into how these developments could affect your business – or to discuss strategies to manage FX exposure – speak to a Qu Money expert today.