Even though decent news about the eurozone economy has been released, the euro continues to struggle. The 18-nation currency is lower against many of its counterparts, even after the release of PMI data showing continued (albeit slow) expansion.
Part of the issue with the latest PMI data is that, while it shows expansion, and Markit Economics claims that the eurozone economy is growing at its fastest second quarter pace since 2011, it’s still not showing a great deal of improvement. Indeed, the PMI reading for May came it at 53.9, after a reading of 54.0 in April. This isn’t much difference, and that means that eurozone economy is still on the same course as a few months ago.
The news means that, even though there is expansion, it remains slow, and not likely to provide much comfort for policymakers and others. Additionally, the main driver of economic expansion remains Germany. As a result, many expect that the ECB will begin further easing and stimulus measures in June. This news weighs on the euro, and continues to keep the 18-nation currency down against many of its counterparts.
At 13:43 GMT EUR/USD is down to 1.3652 from the open at 1.3687. EUR/GBP is down to 0.8095 from the open at 0.8098. EUR/JPY is a little higher, up to 138.7775 from the open at 138.7455.
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