Eurozone PMIs remain soft, Euro steady

[Redator]

The euro is showing limited gains on Monday. In the North American session, EUR/USD is trading at 1.1529, up 0.07% on the day.

Eurozone PMIs show little change

Eurozone PMIs showed little change in June. The Services PMI rose to 50.0 from 49.7 in May, matching the market estimate. This indicated a slight stabilization in business activity.

The Manufacturing PMI remained unchanged in June at 49.7, pointing to slight contraction and missing the market estimate of 49.8. In Germany, the largest economy in the eurozone, manufacturing and services remained in contraction. The Manufacturing PMI ticked higher to 49.0 from 48.9, while the Services PMI rose to 49.4 from 47.8.

The PMI reports point to a weak eurozone economy. The European Central Bank trimmed its deposit rate to 2.0% earlier this month in an attempt to kickstart the economy. The drop in May eurozone inflation cemented the ECB rate cut - CPI dropped to 1.9% in May from 2.2% in April, its lowest level since September 2024. Core CPI declined to 2.3% from 2.7%.

US Services PMI slips

The US Services PMI fell to 53.1 in June, down from an upwardly revised 53.7 and just above the market estimate of 52.9. The Manufacturing PMI remained unchanged at 52.0, above the market estimate of 51.1.

The Federal Reserve remains in wait-and-see mode, with the uncertainty over the tariffs and the Israel-Iran war raising concerns about global oil supplies. The Fed has maintained rates at four straight meetings, despite pressure from President Trump to lower rates. The markets expect the Fed to remain on the sidelines at the June 30 meeting, with one or two rates expected in the second half of the year.

EUR/USD Technical

• There is support at 1.1518 and 1.1492
• The next resistance lines are 1.1548 and 1.1574

USDJPY 1-Day Chart, June 23, 2025

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