German Preliminary Manufacturing PMI drops to 43.4 in June vs. 46.4 expected
- Germany’s Manufacturing PMI dipped to 43.4 in June vs. 46.4 estimate.
- Services PMI for the German economy fell to 53.5 in June vs. 54.4 forecast.
- EUR/USD falls further below 1.0700 after weak German PMIs.
The German manufacturing sector contraction unexpectedly deepened in June while the services sector also lost its expansionary momentum, the preliminary business activity report published by the HCOB survey showed Friday.
The HCOB Manufacturing PMI in the Eurozone’s economic powerhouse arrived at 43.4 this month, deteriorating from May’s 45.4 while much below the expected 46.4 readout. The index tripped to the lowest level in two months.
Meanwhile, Services PMI fell from 54.2 in May to 53.5 in June, missing the market expectations of 54.4 in the reported period. The measure also hit a two-month low.
The HCOB Preliminary German Composite Output Index came in at 50.6 in June vs. 52.7 estimated and 52.4 reported in May. The gauge was at its weakest in two months.
FX implications
EUR/USD has come under renewed selling pressure on the disappointing German data, currently trading 0.22% lower on the day at 1.0675.
Euro PRICE Today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the weakest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.25% | 0.11% | -0.08% | 0.02% | 0.04% | -0.03% | -0.04% | |
| EUR | -0.25% | -0.15% | -0.29% | -0.22% | -0.19% | -0.26% | -0.33% | |
| GBP | -0.11% | 0.15% | -0.18% | -0.09% | -0.06% | -0.14% | -0.17% | |
| JPY | 0.08% | 0.29% | 0.18% | 0.11% | 0.13% | 0.06% | 0.05% | |
| CAD | -0.02% | 0.22% | 0.09% | -0.11% | 0.00% | -0.06% | -0.08% | |
| AUD | -0.04% | 0.19% | 0.06% | -0.13% | 0.00% | -0.09% | -0.10% | |
| NZD | 0.03% | 0.26% | 0.14% | -0.06% | 0.06% | 0.09% | -0.03% | |
| CHF | 0.04% | 0.33% | 0.17% | -0.05% | 0.08% | 0.10% | 0.03% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
