Euro Starts The Week Lower On Manufacturing PMIs

Forex News

The first trade session of the month began with a slight weakening of the euro, which retreated after a significant increase on Friday. The single currency fell amid the deepening crisis of the coalition in Germany, where Chancellor Angela Merkel received a new blow. German Interior Minister Horst Seehofer, who called for tightening border controls, said he was ready to resign as minister and as chairman of the Christian Social Union (CSU), a junior partner in the coalition in the government of Merkel. The EUR/USD pair fell by 0.37% and is trading at 1.1642 level.

The Eurozone's manufacturing sector expanded in June at the weakest pace in the past 18 months. The IHS Markit reported, that the index of business activity in the manufacturing sector fell to an 18-month low of 54.9 in June from 55.5 in May. This was slightly below the forecast of economists 55.0.

German manufacturing PMI fell to an 18-month low of 55.9 in June from 56.9 in May, which is in line with economists' forecasts. The index declined in each of the last six months of this year from a record level in December last year.

The Eurozone unemployment rate fell in May. The European Union's statistics agency said the numbers of unemployed across the 19 countries that use the euro fell 125k in May from April, leaving the jobless rate unchanged at 8.4%.