We established a tactical short here as discussed in the morning post with SL at 1.0945 as the PMIs point to improving prospects for the EZ but Germany and France (two of the largest economies in EZ) weigh on the EZ recovery.
Eurozone PMIs painted a mixed picture
EZ Mfg PMI 46.6 prior 44.4
German Mfg PMI 45.40 prior 43.70
France Mfg PMI 43.2 prior 42.21
EZ Services PMI 48.40 prior 48.80
German Services PMI 47.60 Prior 49.30
France Services PMI 45.00 prior 45.70
German Services PMI 47.60 Prior 49.30
France Services PMI 45.00 prior 45.70
Key Takeaways
Recession persists into 2024 though the Jan decline was the smallest since July 2023
The downturn continued to be led by France, where output fell for an eighth successive month and at the sharpest rate since last September thanks to steepening contractions in both manufacturing and services.
Output also fell at a steep and accelerating rate in Germany, albeit a moderating downturn in manufacturing helping offset a worsening service sector situation.
In contrast, the rest of the eurozone as a whole returned to growth after five months of decline, recording the largest - yet still modest - expansion since last June. Service sector growth outside of France and Germany accelerated to a six-month high and the manufacturing decline moderated to register the smallest reduction for ten months.
Faster input cost inflation was matched by an upturn in selling price inflation in January. Average prices charged for goods and services also rose at the steepest rate since last May.
Comments
Post a Comment