Eurozone Private Sector Shrinks

On Monday, credit ratings agency Moody’s lowered its outlook for Germany, Netherlands and Luxembourg.

“The German manufacturing sector has been one of the key elements of the eurozone recovery and to see it contracting at this rate is really quite worrying,” said Chris Williamson, chief economist at Markit.

Markit’s composite Purchasing Managers’ Index (PMI), which combines both the services and manufacturing sectors, was unchanged at 46.4 in July. Any reading below 50 suggests a contraction.

The reading for Germany’s manufacturing activity was 43.3, a 37-month low.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza