According to Markit, manufacturing PMI in the euro-zone now stands at 51.3 points, and services at 51, both reflecting some growth. Both figures were expected to be at growth territory, with manufacturing advancing from 50.3 to 50.9 points, and services crossing the line from 49.8 to 50.2 points.
EUR/USD attempted to recover and rise above the 1.3350 line before the release and it is now moving cautiously above this line.
Earlier, Germany’s PMIs came out better than expected: manufacturing advanced from 50.7 to 52 points, beating expectations of 51.1. Services made a similar move, from 51.3 to 52.4, better than 51.7 expected.
However, the numbers for France disappointed: manufacturing remained unchanged at 49.7 points, falling short of predictions for 50.4. Services dropped from 48.6 to 47.7, significantly lower than 49.3 expected.
The euro has been on the defensive since the release of the FOMC meeting minutes. While not revealing any shockers, there is a growing notion that the Fed will begin tapering in September.
