EUR

EUR
Yesterday saw the release of the Markit Manufacturing data for Europe. Manufacturing growth across the currency zone as a whole eased off slightly in April from March’s 10-month high, according to the latest eurozone manufacturing PMI. With the reading coming in at 52, which is just down on the revised figure of 52.2 for the previous month. Ireland and Spain led the continued expansion although the pace of growth slipped. Whereas factories in Greece and France suffered falling production and job cuts.
 
Manufacturers also raised average selling prices for the first time since August 2014, news that will reassure policymakers at the European Central Bank (ECB) after launching a large-scale quantitative easing (QE) programme to head off deflation. Since the €60bn-a-month stimulus programme was launched in March, data from the currency union has pointed to steadier growth – official figures last week showed the four month run of deflation came to an end in April.
 
Markit said the manufacturing report and early indications for April from the services sector pointed to quarterly GDP growth in the eurozone 0.4%. That would be in line with expectations in a recent Reuters poll of economists.                             
 
Also the upturn in Eurozone investor sentiment stabilised in May. The Sentex investor confidence report hit 19.6 in May, down marginally on April’s 20. However, it remains high compared to January, when the index scored just 0.9. All in all things are looking more positive for the Eurozone. 

Key Announcements
EUR – 10:00 – European Commision Growth Forecasts
USD – 13:30 – Trade Balance expected to increase from -35.4B to -40.3B
USD – 15:00 – ISM Non Manufacturing PMI (April) expected to stay the same at 56.5

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