German Preliminary Manufacturing PMI rises to 64.9 in June vs. 63.0 expected, EUR/USD rises

  • German Manufacturing PMI arrives at 64.9 in June vs. 63.0 expected.
  • Services PMI in Germany expands to 58.1 in June vs. 55.5 expected.
  • EUR/USD jumps 10-pips to 1.1935 on upbeat German PMIs.

The German manufacturing sector unexpectedly quickened its pace of expansion in June, the preliminary manufacturing activity report from IHS/Markit research showed this Wednesday.

The Manufacturing PMI in Eurozone’s no.1 economy stood at 64.9 this month vs. 63.0 expected and 64.4 prior. The index jumped to two-month lows.

Meanwhile, Services PMI expanded to 58.1 in June as against the previous month’s reading of 52.8 and 55.5 estimated. The index clinched 123-month tops.

The IHS Markit Flash Germany Composite Output Index rebounded to hit 123-month highs, arriving at 60.4 in June vs. 57.5 expected and May’s 56.2.

Key comments from Phil Smith, Principal Economist at IHS Markit

“As anticipated, the further loosening of COVID-19 restrictions has given an additional boost to the recovery of the German economy, with the ‘flash’ PMI rising steeply to its highest for over a decade. And with containment measures set to be lifted further in July, this strong momentum is on course to carry over to the third quarter.”

“The upturn in growth in June was unsurprisingly driven by the service sector, where firms reported the positive effects of looser containment measures and greater levels of travel activity on demand.”

FX implications

EUR/USD cheers upbeat German Business PMIs, as it rises 10-pips to test the session highs of 1.1937. The spot still trades modestly flat on the day below 1.1950.

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