(MENAFN– ecpulse) The economic clock is expected tick louder on Tuesday, with the Eurozone manufacturing Purchasing Managers` Indexes data due to be released. The euro-area PMIs are forecasted to show negative feed about the bloc’s manufacturing activity in June.
Eyes will remain on the flow of economic data from the 18-nation region, following the surprising interest rate cut by the European Central Bank (ECB) Mario Draghi in June. Figures for the euro-zone are seen unrevised for June, while those for Britain are seen pulling back from very high levels of May.
- Eurozone PMI manufacturing probably unrevised at 51.9 down from 52.2 in May
- Germany PMI manufacturing likely unchanged at 52.4 vs. 52.3 a month ago
- France PMI manufacturing still contracted to 47.8 after 49.6
The Purchasing Managers` Indices (PMIs) for manufacturing on Tuesday and services on Thursday are expected to show the bloc continued to show growth or at least stability despite geopolitical tensions around Ukraine and Iraq.
Moving to Germany, Europe`s largest economy, unemployment is estimated to hold steady near its record low levels at 6.7 percent in May.
- Unemployment Change expected to fall 10,000 from 24,000 rise
- Unemployment Rate likely steadied at 6.7 percent
Positive data may boost the bullish outlook for the single currency, however, should the figure underpin a more a subdued recovery in Europe`s largest economy, the short-term rebound in EURUSD may be threatened.
Today’s update will provide fresh guidance for deciding how the recovery is unfolding. In the FX market, the euro slashed gains versus the dollar in early trades, trading at $1.36782 after the pair started at $1.36910. The pair has so far touched a high of $1.36945 and a low of $1.36780.
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