Positive PMIs Didn’t Support Euro
The single currency has mildly weakened. At this point, euro/dollar pair is trading under the 1.14 line. German Manufacturing PMI increased to 59.6 and the Eurozone Manufacturing PMI rose to 57.4. Today, the United States will publish ISM Manufacturing PMI.
Last week, the euro saw some significant gains. This was attributed to Mario Draghi’s statement about the ECB’s policy steps for the future. But, there seem to be some kind of misunderstanding as the President simply intended to reassure markets that the economy is recovering and that it’s better to wait this time of low inflation out. Instead, everybody assumed that ECB is ready for an exit from an ultra-loose monetary policy. US Gross Domestic Product was revised up to 1.4%. Consumer confidence and exports remain strong. Inflation and consumer spending are still weak. Personal Spending dropped from 0.4% to 0.1%.