Forex analytics and overview

Economic Activity Cools, Euro Slumps

2023.06.23 09:53

FxPro Financial Services Ltd

The suffered a setback after the June PMIs revealed a slowdown in economic activity. Analysts were caught off guard by the contraction in s, which dropped from 52.5 to 48.0 – far below the forecast of 52.2. Manufacturing also disappointed, staying below 50 for the tenth time in twelve months.

Weakness in euro area PMIs for JuneWeakness in euro area PMIs for June

Germany followed with a grim report, showing a sharp decline in both manufacturing and services. The plunged from 43.2 to 41.0 (43.6 expected), and the services PMI slipped from 57.2 to 54.1 (56.3 expected).

These poor results weighed on the euro zone’s overall performance, where the composite business activity index fell to 50.3, its lowest level since January. The manufacturing PMI came in at 43.6, signalling a severe contraction in the region’s economy soon. Apart from the Covid dip, it has only been lower between October 2008 and May 2009, when the economy shrank by more than 5%. Although the current situation is not as dire, fears are mounting.

The lost around 1.5% in less than a day after touching 1.10 in the middle of the European session on Thursday. It accelerated as it broke below 1.0920 on Friday morning following the release of the Eurozone PMI estimates.

EURUSD is hovering around its 50-day moving averageEURUSD is hovering around its 50-day moving average

Intraday, the EURUSD is hovering around its 50-day moving average. If it can hold above this level in the coming days, it could attract active buyers and further push the pair to test previous highs above 1.1070.

However, weak macroeconomic data and dwindling risk appetite in global markets increase the odds of a downward move, at least to the lower border of the rising channel at 1.0700 or further to the previous local lows at 1.0550.

The FxPro Analyst Team

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 96,001.72 1.05%
ethereum
Ethereum (ETH) $ 3,338.81 1.10%
tether
Tether (USDT) $ 0.998024 0.13%
xrp
XRP (XRP) $ 2.21 2.07%
bnb
BNB (BNB) $ 677.72 1.94%
solana
Solana (SOL) $ 183.91 1.09%
dogecoin
Dogecoin (DOGE) $ 0.315575 1.44%
usd-coin
USDC (USDC) $ 0.999175 0.04%
staked-ether
Lido Staked Ether (STETH) $ 3,335.03 1.01%
cardano
Cardano (ADA) $ 0.894875 1.63%
tron
TRON (TRX) $ 0.250445 1.06%
avalanche-2
Avalanche (AVAX) $ 36.97 2.60%
chainlink
Chainlink (LINK) $ 22.96 2.69%
the-open-network
Toncoin (TON) $ 5.45 0.01%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,960.84 1.05%
shiba-inu
Shiba Inu (SHIB) $ 0.000022 0.67%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 95,517.59 1.40%
sui
Sui (SUI) $ 4.32 3.55%
stellar
Stellar (XLM) $ 0.359074 1.30%
polkadot
Polkadot (DOT) $ 7.02 0.07%
hedera-hashgraph
Hedera (HBAR) $ 0.275483 5.19%
hyperliquid
Hyperliquid (HYPE) $ 27.36 17.46%
weth
WETH (WETH) $ 3,338.88 0.88%
bitcoin-cash
Bitcoin Cash (BCH) $ 444.56 2.18%
leo-token
LEO Token (LEO) $ 9.44 1.25%
uniswap
Uniswap (UNI) $ 13.78 1.26%
litecoin
Litecoin (LTC) $ 102.98 0.14%
pepe
Pepe (PEPE) $ 0.000018 0.33%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,524.95 1.31%
near
NEAR Protocol (NEAR) $ 5.15 1.54%
ethena-usde
Ethena USDe (USDE) $ 0.997817 0.09%
bitget-token
Bitget Token (BGB) $ 4.11 1.43%
usds
USDS (USDS) $ 0.999872 0.35%
aptos
Aptos (APT) $ 9.23 2.00%
aave
Aave (AAVE) $ 336.69 9.81%
internet-computer
Internet Computer (ICP) $ 10.15 0.39%
crypto-com-chain
Cronos (CRO) $ 0.155247 2.46%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.481716 0.50%
mantle
Mantle (MNT) $ 1.19 1.33%
ethereum-classic
Ethereum Classic (ETC) $ 26.52 0.71%
vechain
VeChain (VET) $ 0.046687 0.48%
render-token
Render (RENDER) $ 7.18 1.02%
monero
Monero (XMR) $ 193.00 1.63%
whitebit
WhiteBIT Coin (WBT) $ 24.50 0.46%
dai
Dai (DAI) $ 0.999676 0.02%
mantra-dao
MANTRA (OM) $ 3.55 5.14%
bittensor
Bittensor (TAO) $ 456.98 2.19%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.29 0.17%
arbitrum
Arbitrum (ARB) $ 0.76539 0.74%
ethena
Ethena (ENA) $ 1.05 0.59%