Eurozone PMI resilience tempers stagflation fears
Eurozone PMIs unexpectedly improved, with the composite at an eight-month high and services returning to expansion, easing immediate stagflation worries.
EURUSD
Eurozone purchasing managers’ indices (PMIs) surprised to the upside, according to BNY’s Geoff Yu. The composite PMI hit an eight-month high, while the services sector moved back into expansion territory.
This resilience has helped cool near-term stagflation fears that had weighed on sentiment for the single currency.
The data suggests the Eurozone economy is holding up better than some forecasts had implied, potentially reducing the urgency for aggressive monetary easing by the European Central Bank.
Source: FXStreet Forex News