Euro dollar macroeconomic overview
Growth was modest but still hopeful as the seasonally adjusted EU composite PMI rose from 50.3 in March to 51.4 in April. According to the official report, the German private sector also returned to growth at the beginning of the second quarter.
The composite PMI index returned above 50 for the first time in ten months in April, coming in at 50.5 after 47.7 in March. In both Germany and the Eurozone the manufacturing sector remains the weakest leg, as it remained in contraction territory.
After the opening of Wall Street, the preliminary PMI data for the United States was published, in which the manufacturing sector saw a release well below expectations, even going below 50 (49.9 vs 52 expected) while that of services, despite below expectations, still above 50.
Financial markets are still awaiting the weekend’s high-impact US data before making any strong directional moves, with the US due to release its preliminary estimate of first-quarter Gross Domestic Product and the Personal Consumption Expenditure Price Index on Friday (PCE index) for March.
