Currency Analyst since 2010

May 22: European session

EUR/USD continues trading below $1.3700 after the euro zone’s PMIs came mixed. While manufacturing PMIs in France, Germany and the euro area as a whole turned out to be lower than expected, services PMIs were firmer. German manufacturing PMI fell to 52.9 vs. the forecast of 54, while the euro zone’s manufacturing PMI dropped to 52.5 vs. the forecast of 53.2.

GBP/USD fell from the daily high of $1.6917 to $1.6870 as the UK public sector net borrowing came much worse than expected (9.6B vs. 3.6B forecasted). UK GDP increased by 0.8% in Q1, up from the 0.7% rise in the previous quarter. This result is in line with market consensus. UK preliminary business investment increased by 2.7% in Q1 (forecast: 2.3%). Great Britain will release industrial order expectations later in the session.

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