Service-based activity in the U.K. expanded for the first time since April 2008, with the PMI reading jumping to 51.7 in May from 48.7.
[B]Fundamental Headlines[/B]
• [I]Germany Blasts “Powers of the Fed”[/I] – Wall Street Journal
• [I]US Car Sales Boost Mirrors Global Rise[/I] – Financial Times
• [I]U.K. Service Industries Unexpectedly Grew in May for First Time in a Year [/I]– Bloomberg
• [I]Fed Is Said to Raise Capital Standards for Banks Seeking to Pay Back TARP[/I] – Bloomberg
• [I]Europe Consumer Spending, Exports Drop Most in 14 Years as Economy Shrinks[/I] – Bloomberg
[B]EURUSD[/B] – The final services PMI for the Euro-Zone ticked higher to 44.8 from an initial reading of 44.7, with the composite index increasing to 44.0 from 43.9, while the German PMI unexpectedly ticked lower to 45.2 from 46.0. At the same time, the preliminary GDP reading confirmed a 2.5% drop in the first quarter, while the annual rate of growth slipped 4.8% amid forecasts for a 4.6% drop, driven by a 0.5% decline in household spending. Meanwhile, business investments slumped 4.2%, which was less than the 4.6% drop projected by economists, while government spending held flat from the previous quarter. Moreover, the producer price index fell 1.0% in April, while the annualized rate plunged 4.6% from last year to mark the biggest contraction since recordkeeping began in 1981. Discuss the topic and your trade ideas in the EUR/USD Forum.
[B]GBPUSD[/B] – Service-based activity in the U.K. expanded for the first time since April 2008, with the PMI reading jumping to 51.7 in May from 48.7. The data suggests that the economic downturn may have reached a bottom in the first-quarter as policymakers took unprecedented steps to soften the landing of the economy, and the rise in services encourages an improved outlook for future growth as the Bank of England expects an economic recovery later this year. For more news and resources, visit the Pound Currency Room.