The euro will have to look towards the ECB for relief
Today's set of PMI prints isn't really helping the single currency
Although services and composite PMIs for the French, German, and Eurozone readings were either slightly improved or stalled, the prints for manufacturing were disappointing. As mentioned in the Eurozone report, the manufacturing print hit a 14-month low with output touching lows not seen in 17 months.
That sort of negativity doesn't really scream 'rebound' relative to the slower start in Q1 this year compared to the end of last year. Even Draghi himself admitted that growth may have peaked, but he still expects the growth momentum to continue.
If the euro is to get any form of reprieve this week, it will only come from the ECB and the maestro himself. Should the statement or press conference continue to reiterate the belief that the inflation outlook will allow them to normalise policy, then it will serve as the right kind of ammunition for euro bulls to reload on longs in the event of a dip heading into the meeting on Thursday.
In the meantime, expect a more nervous time for euro bulls with key downside levels being eyed at the moment.