Euro Remains Firm After Manufacturing PMIs and Retail Sales Data
The Euro/Dollar pair continues to trade steadily. The euro strengthened by 0.07% against the US dollar today, and is trading at around 1.2310. Tomorrow, there will be published data on the CPI and the unemployment rate of the Eurozone, and the US will release ADP payrolls and the ISM Non-Manufacturing PMI.
Activity in the Eurozone manufacturing sector fell to an eight-month low in March. IHS Markit's final purchasing managers' index for the bloc was at 56.6, in line with the flash estimate and down from February's final reading of 58.6, with a slowdown across all nations and manufacturing sub-sectors. It’s also the biggest fall in the series since June 2011. Germany manufacturing PMI was revised down to 58.2, from 58.4.
German retail sales declined for the third consecutive month in February. The statistical office of Destatis reported, that retail sales unexpectedly fell by 0.7% in February, taking into account seasonal fluctuations, which is more than a decrease of -0.3% in January (revised from -0.7%). It was expected, that sales will grow by 0.6%. On an annualized basis, retail sales growth fell to 1.3% from 2.5% in January. Economists predicted that sales will grow by 2.2%. In nominal terms, retail sales fell by 0.7% per month, and in annual terms increased by 2.5%.