EUR/USD has posted slight gains on Thursday, as the pair trades in the high-1.34 range in the European session. The euro received some help as German and Eurozone PMIs met or exceeded expectations. However, French PMI data was not as positive. In Spain, the unemployment rate dropped below 25% for the first time in almost two years. In the US, today's key events are Unemployment Claims and New Home Sales. The markets are braced for weaker numbers from both releases.
Eurozone PMIs were released on Thursday, and the news was generally encouraging. German Services and Manufacturing PMIs improved in June and beat their estimates. Services PMI was particularly impressive, hitting a three-year high, at 56.6 points. In the Eurozone, Services PMI easily beat the estimate, while Manufacturing PMI met expectations. In France, the PMI data failed to keep pace with its European counterparts. Manufacturing PMI came in below the 50-point level for a second straight month, which points to contraction in the manufacturing sector. Services PMI pushed above 50 for the first time since March, indicating expansion.
US numbers were a mix on Tuesday. Inflation numbers continue to struggle, as Core CPI posted a paltry gain of 0.1%, shy of the estimate of 0.2%. The key index has looked anemic in 2014, with its highest gain this year at just 0.3%. CPI was bit stronger, as it gained 0.3% last month, matching the forecast. Meanwhile, Existing Home Sales jumped to 5.04 million, surpassing the estimate of 4.94 million. This was the best showing we've seen since October, and follows a disappointing release from Housing Starts, which was published last week.
EUR/USD 1.3475 H: 1.3485 L: 1.3438
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