Strategist: Weak Eurozone PMI data may weigh on the euro
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The market still largely reflects expectations of a rate hike in June, but it may “soon begin to question just how many hikes the European Central Bank can actually deliver in an environment of economic contraction, deteriorating supply chain conditions, and recession language in official survey comments.” He stated that these factors should limit any gains in the euro and maintain an appropriately neutral bias, with the June meeting now being a critical moment. In May, the eurozone composite Purchasing Managers’ Index fell to a 31-month low of 47.5. The euro was steady at $1.1629.
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