In the Asian session on Thursday (May 25), the EUR/USD fell back from its highs, temporarily reporting at 1.0747, a drop of 0.03%. Core services inflation in the euro zone, reported on Tuesday, remained elevated, amid expectations that the European Central Bank will raise interest rates in June and July.
The latest from the European Central Bank:
The euro zone’s economy is not satisfactory, so that the euro is under pressure. According to the latest data, the preliminary manufacturing PMI statistics in the euro zone fell to 44.6 unexpectedly in May, which was lower than the market expectation of 46, further below the 50 line of prosperity and contraction indicating economic contraction and fell to a 36-month low; the euro zone 5 The flash monthly services PMI also fell, though a reading of 55.9 still pointed to strong economic growth and was above market expectations of 55.6. In addition, strikes in many European countries continued to protest against rising inflation, which also dealt a certain blow to the economy and the euro.
