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breaking news Germany June flash manufacturing PMI 52.0 vs. 54.0 expected


  • Before 54.8
  • Services PMI 52.4 vs. 54.5 expected
  • Before 55.0
  • Composite PMI 51.3 vs. 53.1 expected
  • Before 53.7

After the weak French readings earlier, Germany also suffered a major hit to activity in June. Falling exports and strong inflationary pressures are weighing on economic conditions, as the outlook becomes increasingly bleak. The manufacturing reading is at a 23-month low with services and composite readings seen at 5-month and 6-month lows respectively. Ouch.

The euro takes an additional hit with EUR/USD

EUR/USD

The EUR/USD is the currency pair comprising the single currency of the European Union, the euro (symbol €, code EUR), and the dollar of the United States (symbol $, code USD). The pair rate indicates how many euros are needed to buy a dollar. For example, when EUR/USD is trading at 1.2, it means that 1 euro equals 1.2 dollars. Why the EUR/USD is the Most Popular Trading PairCompared to all tradable currencies, the Euro (EUR) is the second most traded currency in the world, behind the US Dollar. This currency pair is the most traded and liquid currency pair in the market. As the most popular trading pair, EUR/USD is a staple of all brokerage offerings and often has some of the lowest spreads compared to other pairs. Ultimately, the currency trails the two most economical blocs in the world and sees the most volume for this reason. EUR/USD has a wide range of factors that influence its rates. On the Euro side, Eurozone economic data as well as internal bloc factors can easily impact rates. Even smaller member states can effectively weigh on the euro, as seen in Greece during bailout talks in the 2010s. Alternatively, developments in the United States and at the Federal Reserve generally affect the EUR/ usd. Many examples include bailouts during the financial crisis, tax cuts under the Trump administration, and Covid-19 relief measures, among others.

The EUR/USD is the currency pair comprising the single currency of the European Union, the euro (symbol €, code EUR), and the dollar of the United States (symbol $, code USD). The pair rate indicates how many euros are needed to buy a dollar. For example, when EUR/USD is trading at 1.2, it means that 1 euro equals 1.2 dollars. Why the EUR/USD is the Most Popular Trading PairCompared to all tradable currencies, the Euro (EUR) is the second most traded currency in the world, behind the US Dollar. This currency pair is the most traded and liquid currency pair in the market. As the most popular trading pair, EUR/USD is a staple of all brokerage offerings and often has some of the lowest spreads compared to other pairs. Ultimately, the currency trails the two most economical blocs in the world and sees the most volume for this reason. EUR/USD has a wide range of factors that influence its rates. On the Euro side, Eurozone economic data as well as internal bloc factors can easily impact rates. Even smaller member states can effectively weigh on the euro, as seen in Greece during bailout talks in the 2010s. Alternatively, developments in the United States and at the Federal Reserve generally affect the EUR/ usd. Many examples include bailouts during the financial crisis, tax cuts under the Trump administration, and Covid-19 relief measures, among others.
Read this term falling from 1.0530 to 1.0507. The dollar is catching a wider bid alongside the yen as a result, as risk sentiment takes a hit.

S&P Global notes that:

“The June PMI flash data shows that the German economy has lost virtually all of the momentum gained from the easing of virus-related restrictions, with growth in the services sector slowing sharply for the second month in a row in June.

“But perhaps the biggest cause for concern is a broad-based decline in demand, with a growing slowdown in new manufacturing orders coinciding with a first drop in new business in the service sector for six months, as rising prices and high levels of uncertainty are taking their toll, however activity is still supported to some extent by the workloads accumulated earlier in the year.

“Pricing pressures remain historically high. However, there are signs that businesses may find it increasingly difficult to pass on rising costs to customers, with average prices charged for goods and services rising at the slowest rate in three months despite a faster rise in prices. input costs that the survey partly linked to rising wage pressures.

“Thanks to a particularly bleak outlook for the manufacturing sector, business confidence in future activity is now at its lowest since the first wave of the pandemic two years ago, and we are seeing this translate into a broad-based slowdown in job creation as companies begin to reassess their staffing needs in the future.


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