EUR/USD - German manufacturing PMI beats expectations
German manufacturing beat expectations of 43.8 to print at 44.1. Not only was the number good the previous month's result was revised higher to 43.8 from 42.1. There was no massive immediate reaction from the Eur but it is a positive sign for the Eurozone as a whole.
German manufacturing is the most important in Europe as the German economy is the largest. Their manufacturing sector also makes up for a large percentage of European GDP. The main theme for the Euro at the moment has been the slow down in the EU as US data has remained firm. Just last week US GDP beat expectation while the EU still remains somewhat sluggish in comparison.
Later we are due to hear from ECB's Lagard who is set to giver her introductory statement at the ECON Hearing of the European Parliament in Brussels, Belgium. Obviously we do not know if her comments will be related to monetary policy but we will be keeping a close eye on proceedings. Later on, the market will also get the latest US manufacturing readings and while the ISM number is expected to remain in contraction the main figure is expected to come in at 52.2.