EURO Data Dulls Major Pairs Ahead Of Jobs

So far this week we have seen that Monday's Euro PMI reports have been tentatively supporting a market view that the Euro-zone downturn that we have been caught up in is possibly stabilizing. Interestingly the IMF's Christine Lagarde has a different viewpoint. She believes that the recent global economic data is showing us a "somber trend" and see the global economy entering a "softer patch" as downside risks "remain prominent." For the Europeans, the natural outlier remains Germany, the anointed backbone of Europe, where attention remains focused on whether there are any positive surprises from the recent flash PMI releases for May.

Despite the Euro region remaining in a recession, Monday's manufacturing activity data was surprisingly strong for the bloc's more troubled economies – Spain, Italy and Greece. Even Germany is threatening to enter expansion territory again. Nevertheless, even with a strong link there is a weak link and France remains the 'big four' economic...