On Wednesday (May 24) in the Asian session, the latest price of EUR/USD was 1.0773, and the opening price was 1.0771. The initial value of the Eurozone PMI in May did not rebound as most economists expected, but fell further and continued in the The expansion of the PMI of the service industry also slowed down that month, making the comprehensive PMI of the region decline from the previous month, and it was not as good as expected.
The ECB also expects that, on average, from 2022 to 2025, rate hikes will reduce economic growth by two percentage points per year. The dampening effect is likely to be strongest in 2023. Economists said the health of the services sector could mean that euro zone GDP rose in the second quarter, but the drag on the broader economy from manufacturing, especially in Germany, was significant and would persist. The latest PMI survey also showed that accelerated price rises in the service sector and a strong labor market supported the ECB’s continued interest rate hikes.
