Home Economy Euro slumps after bleak PMIs, dollar drops vs yen

Euro slumps after bleak PMIs, dollar drops vs yen

  • U.S. jobless claims fall, but slowdown emerging
  • Fed’s Powell speaks before Congress for 2nd day
  • European PMIs come in softer than expected

LONDON/NEW YORK, June 23 (Reuters) – The euro fell across the board on Thursday as weaker-than-expected German and French PMI data confirmed that the euro zone economy is struggling to gain traction, prompting traders to trim bets on big interest rate hikes from the European Central Bank.

High prices in the euro zone meant demand for manufactured goods fell in June at the fastest rate since May 2020 when the coronavirus pandemic was taking hold, with S&P Global’s headline factory Purchasing Managers’ Index (PMI) falling to a near two- year low of 52.0 from 54.6. read more

“The (PMI) manufacturing/services ratio tends to be a good barometer for pro-cyclical currencies. The ratio has sharply dropped relative to the U.S.,” said Mazen Issa, senior FX strategist in a research note.

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