020 7898 0500In some ways, the eurozone’s reputation precedes it, as although the manufacturing PMI figure for July climbed to 55.1 from 54.9 the previous month, the reception to the news was lukewarm at best. The truth is that the eurozone just isn’t performing as it did last year and yesterday’s reading was little-changed from June’s 18-month low.
Output expansion was the second-weakest it has been since November 2016 and new order growth at its lowest for 22 months. It is clear that ongoing trade war fears are exerting their influence on performance and confidence. However, job creation is still healthy and optimism has picked up from June’s 31-month low. Still, the euro lost some ground against sterling and the dollar following the releases.
It is a quiet day for eurozone economic data today, but all eyes will be on the UK interest rate decision. We could see some euro movements, but they will likely be influenced by events elsewhere.
