EUR/USD is steady on Tuesday, as the pair trades in the mid-1.24 range in the European session. On the release front, it’s a busy day in the Eurozone. German Manufacturing PMI improved to 51.4 points, and the Eurozone reading improved to 50.8 points. Later in the day, we’ll get a look at German ZEW Economic Sentiment and Eurozone CPI. In the US, today’s major events are Building Permits and Housing Starts.
There was some good news on the Eurozone manufacturing front, as German Manufacturing PMI improved to 51.2 points, up from 50.0 points a month earlier. A reading above the 50-point level indicates expansion. The Eurozone released improved to 50.8 points, up from 50.4 points. French Manufacturing PMI showed little change, coming in at 47.9 points. The index has been under 50 since April, indicative of ongoing contraction. Services PMIs were mixed, as the German release weakened, while the Eurozone and French readings improved.
The US ended last week with mixed news, as inflation dipped while consumer confidence jumped. The Producer Price Index, the primary gauge of manufacturing inflation, dropped by 0.2%, its worst showing in six months. The estimate stood at -0.1%. Meanwhile, UoM Consumer Sentiment moved higher for a fourth straight month, pointing to increased optimism among US consumers. The key indicator soared to 93.8 points, its highest level since January 2007 and well above the forecast of 89.6 points. There was more good news from retail sales and jobless claims. Core Retail Sales came in at 0.5%, ahead of the estimate of 0.1%. Not to be undone, Retail Sales posted a gain of 0.7%, beating the estimate of 0.4%. This was the indicator’s strongest showing in 12 months. There was more good news on the job front, as Unemployment Claims dipped to 294 thousand, below the forecast of 299 thousand.
EUR/USD 1.2476 H: 1.2481 L: 1.2435
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