Germany: S&P Global Manufacturing PMI arrives at 52 (final) in June as expected

S&P Manufacturing PMI for Germany declined to 52 in June.
Markets remain relatively calm ahead of EU inflation data.

Eren Sengezer FXStreet

Business activity in Germany's manufacturing sector expanded at a soft pace in June with the S&P Global Manufacturing PMI retreating to 52 (final) in June from 54.8 in May. This reading matched the previous estimate and the market expectation.

Commenting on the data, "we're seeing a rapid correction in underlying demand for German goods," said Phil Smith, Economics Associate Director at S&P Global Market Intelligence. "Inflows of new orders across the sector showed a deepening decline in June, as firms reported a degree of demand destruction from higher prices, growing market uncertainty, and multiple headwinds to export sales."

Market reaction

This report doesn't seem to be having a significant impact on risk sentiment with Germany's DAX 30 Index trading flat on the day at 12,787 points.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD looks weak below 1.1800

EUR/USD has slipped back under pressure, breaking through the 1.1800 support and drifting towards the weekly lows near 1.1770 ahead of the opening bell in Asia. The move reflects renewed strength in the US Dollar, with steady geopolitical tensions keeping its demand firm. Moving forward, the release of the German labour market report and flash inflation figures should keep European investors entertained on Friday.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold trims gains, slips back to around $5,170

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The yellow metal surrenders part of its earlier gains on the back of the resurgence of the buying interest in the Greenback. In the meantime, geopolitical tensions in the Middle East continue to limit the downside potential for now.