-
EUR/USD – Rallies despite continued weakness in eurozone PMIs
The data from the eurozone isn’t improving early in the new year, with the latest PMI surveys all remaining firmly in contraction territory. While we’re continuing to see improvements in the manufacturing survey, that comes from a very low base and still some way from the 50 threshold that separates growth from contraction. And it doesn’t appear on course to breach that threshold any time soon. The services sector is arguably more problematic as it’s a far more important segment of the economy and it’s showing little sign of recovering. This may aid the case for the ECB to consider cutting rates in the ... (full story)