- German manufacturing PMI drop to 43.1 pts., the lowest since 2012
- Both French PMIs decline, EMU composite PMI at 51.5 pts.
- EURUSD slides ahead of the ECB decision
European industry is in trouble. Source: Macrobond, XTB Research
If the ECB needed an excuse to deliver more easing ahead of the Fed it just got it. The German industry shows no signs of improvement and has just printed the lowest PMI since July 2012. Should it be 0.2p lower, we would be at recessionary levels from 2009. Clearly, a talk of transitory factors needs to be dismissed as something more serious affects not only German but also global industry. Yes, German services sector holds firm but for how much longer? Both French PMIs declined and while still no lower than 50, they are hardly in expansion territory. This might be enough for the ECB to lose patience. Will they cut deposit rate already in July? We will know by tomorrow.
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After a failed rally EURUSD is once again close to 2019 lows just ahead from expected easing from both the ECB and the Fed. Source: xStation5
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