Euro remains trapped as French PMI bounces back, while Germany slumps

Euro has posed a strong comeback post stronger than expected French PMI release, however rally got soured as German PLI slumped.

French PMI -

• French manufacturing PMI, jumped to 49.3 (still in contractionary zone) against 48 in April and 48.5 expected. Similarly services PMI jumped to 51 from 50.6 prior.

• Activity rose for consecutive fourth month in France's services sector with new businesses at private sector firms growing for sixth consecutive month. Employment in services sector grew for third consecutive month.

German PMI -

• German manufacturing PMI slumped to 51.4 in May from 52.1 in April and services PMI dropped to 52.9 from 54 prior.

• New business growth was weaker than prior and new export orders grew at slowest pace in last three months. Overall PMI still remains in expansionary zone, but momentum slowed.

Euro posed a strong individual showing not taking cues from dollar leg, after the French PMI, however that rally got soured post German PMI release.

Euro broke above 1.114, but failed to break above 1.116. Latest strength came from broad based weakness in dollar. Euro is currently trading at 1.114.