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Flash: PMI strong enough to keep ECB on hold – TD Securities

FXstreet.com (London) - Cristian Maggio, Senior Emerging Markets Strategist for TD Securities said that this morning’s PMI data was probably strong enough overall to keep the ECB from cutting rates again at the June meeting.

His report said that French data was largely in line with expectations (manufacturing 0.8pts better than consensus and services 0.2pts worse), but still looks quite weak overall with both indices still in the 44-45 range. Then he added that the German PMIs were similar (manufacturing 0.5pts better but services 0.2pts worse), and both indices have a 49-handle, so the German economy seems to at least be stabilizing.

Overall though, the H2 recovery story is still on track after today’s data, which he said should be good enough for the ECB to avoid having the cut the deposit rate into negative territory. His team still believes that the market would need to see an outright worsening of the data before the ECB would ease policy again.

Flash: Japanese fallout follows through to Europe - BTMU

Derek Halpenny, European Head of Global Markets Research at the Bank of Tokyo Mitsubishi UFJ notes that the turmoil in the Japanese markets today has transmitted into the European trading session as well.
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EU leaders agree to pause austerity, speed up fight against tax evasion

EU officials, who gathered for a summit in Brussels on Wednesday, decided to ease the pace of austerity in order to prop up growth and emphasized the need to strengthen efforts to combat tax evasion.
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