European PMIs Were Good News Except for France

In France, François Hollande’s troubled socialist administration had hoped that a series of major investments and labour market reforms would bear fruit before the summer holiday season. However, unemployment has remained high, order books are low and consumer confidence has waned.

Financial data provider Markit, which produces the PMI surveys, said: “At the heart of France’s woes are a stagnant services economy, which points to weak domestic demand and falling confidence among business and households, as well as an increasingly alarming rate of decline in the manufacturing sector.”

The euro reacted to the generally positive news by rallying from an eight-month low against the dollar to $1.34. It rose against the pound to 79.20 pence, having slumped to a 23-month low on Wednesday.

via The Guardian

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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