Forex: EUR/USD – After Eurozone Markit Services PMI

on Jun 5, 2013
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London based Markit Economics has reported a series of data, indicating the economic situation in the Eurozone services sector.

According to current numbers, the Eurozone PMI Services reading increased to 47.2 points in May, from 47 points in April, below expectations for growth to 47.5. Composite PMI rose to 47.7 from 46.9, matching the forecast.
Separately, the German Services PMI in May, came to 49.7 points, almost unchanged from April’s 49.6, but also less than the expected 49.8 points.

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EUR/USD fell to 1.3056 after the release, expecting the next influence to come from Eurozone GDP Q1 number updates. The update indicated that Eurozone GDP has declined by -0.2 percent in first quarter of 2013, compared with -0.6 percent in last quarter of 2012, matching expectations. The numbers for GDP in Q1 y/y came in slightly negative at a -1.1 percent decrease against -0.9 percent, above expectations for a -1.0 percent decrease.

Finally, Eurozone Retail Sales contracted more than expected in April, falling 0.5 percent m/m and 1.1 percent y/y.
Following these releases, the pair has started a fall, hitting lows at 1.3053. The near-term is pointing to slightly bearish conditions. However, the quote has tried to resume losses and is currently trading at 1.3064, waiting for next US updates today, which will start at 12:00 BST with the most significant Mortgage Applications, followed by ADP Employment Change, Factory Orders and ISM Non-Manufacturing PMI.

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