EUR/USD: Eurozone PMIs firm as ECB pricing shifts – BNY
|BNY’s Head of Markets Macro Strategy Bob Savage highlights that Eurozone composite PMI has risen to a three‑month high, extending private sector expansion, with Germany leading and France still in mild contraction. In the report, the ECB’s outlook is described as having swung from a marginal chance of a cut to a 50% chance of a hike in just two sessions, reshaping rate expectations and supporting the Euro.
Stronger data and hawkish repricing
"The Eurozone’s February composite PMI rose to 51.9 from 51.3 in January, marking a three-month high and extending the private sector expansion to 14 months, as stronger domestic demand lifted both manufacturing and services output."
"The services PMI increased to 51.9 from 51.6, a two-month high, with sales growth driven by domestic orders while export business continued to contract marginally."
"Among major economies, Germany led growth, Italy expanded at a faster pace, Spain slowed and France remained in contraction."
"The ECB’s outlook has now shifted from a marginal chance of a cut this year to a 50% chance of a hike in the space of two trading sessions; all associated EMEA central banks will also need to look at transmission mechanisms as well and keep potential policy gaps to a minimum."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.