Global growth wobbles: Germany, UK & US show strain – Euro currency news daily

Germany has released its data for the Producer Price Index, showing that producer prices fell by 0.9% in April compared to the previous month. This decline marks one of the sharpest monthly drops since October 2024. The year-on-year Producer Price Index also decreased by 0.9%. The day is heavily focused on preliminary Purchasing Managers’ Index (PMI) data across the major European economies, which will provide fresh insights into business conditions and the European Central Bank’s sentiment.

The direction of the Pound today will likely be heavily influenced by the preliminary Purchasing Managers’ Index data. If these figures show a weaker-than-expected performance in the manufacturing and services sectors, it could reinforce concerns about an economic slowdown and weigh on the Pound. The preliminary figures for Manufacturing, Services, and Composite PMIs for May are due. Expectations are for a further decline in private sector activity, which, if confirmed, could put downward pressure on the Pound.

Similarly, preliminary Purchasing Managers’ Index figures for Manufacturing, Services, and Composite sectors across Europe will indicate private sector growth. If they show stagnation or further decline, it could add more pressure on the USD. The USD is currently under pressure due to a confluence of fiscal concerns, bond market weakness, and speculation about government policy favoring a weaker dollar. Today’s economic data, particularly the PMI figures, will be crucial in determining if this weakness persists or if there’s any sign of a rebound for the dollar. Any unexpected strength in the US economy could provide some temporary relief, but the underlying fiscal and debt concerns seem to be a more persistent headwind.

Source: EUbusiness