(EU) Euro Zone May Advanced PMI Manufacturing: 45.0 v 46.0e (lowest reading since June 2009); PMI Services: 46.5 v 46.7e; PMI Composite: 45.9 v 46.6e.
(DE) Germany May Advanced PMI Manufacturing: 45.0 v 47.0e (fastest rate of contraction since June 2009); PMI Services: 52.2 v 52.0e.
(DE) Germany May IFO Business Climate: 106.9 v 109.4e (first MoM decline in 7 months); Current Assessment: 113.3 v 117.1e; Expectations Survey: 100.9 v 102.0e.
(DE) German IFO Economists commented that uncertainty in Euro Zone was impacting Germany’s economy, but outlook remained above its long-term average.
How to interpret these headlines?
We are seeing signs of economic slowdown in both Manufacturing and Services sectors in Europe, not mentioning that UK’s first quarter GDP for 2012 came out worse than expected at -0.3%. Although the hope of Europe, Germany, still shows strength in some sectors, we are seeing an alarming rate of contraction in its May PMI. All of these are leading up to a painful 2012 for Europe, therefore I have no illusions of seeing a strong rally in Euro, at least not now… My view is still to SELL EURUSD on any rallies.
EU Economy Facing Strong Headwind…
May 24, 2012 by Leave a Comment