Latest data released by Markit - 23 May 2018
- Prior 56.2
- Services PMI 53.9 vs 54.7 expected
- Prior 54.7
- Composite PMI 54.1 vs 55.1 expected
- Prior 55.1
Misses all around once again. This follows heavy misses from Germany (on all fronts) and France (on services and composite) earlier in the day. Not surprising to see an overall weaker reading here, and it once again confirms that the slowdown in Q1 is spreading over to Q2.
If inflation doesn't tick higher in May, I don't see how the ECB can actually convince the market that normalising policy at this point in time is the right way to go.
EUR/USD still barely holding above 1.1700, remember there are barriers at the figure level so that may help to hold up the pair for the time being.
------
