23 Jun 2014
Poor Eurozone PMI numbers should worry the ECB - FXBeat
FXStreet (Łódź) - Following today's disappointing preliminary PMI readings for the Eurozone, Jamie Coleman points out on FXBeat that two of the three largest economies in the area are operating very close to, if not below stall speed.
Key quotes
"French PMI was appalling today, no doubt setting off alarm bells at ECB headquarters in Frankfurt."
"With the ECB tool kit close to empty, a slide back into recession in France and Italy could dramatically increase deflationary forces."
"Look for the ECB to maintain its verbal assault while trying to cobble together a viable plan B if the June package does not revive moribund European credit markets."
"Full-blown QE may be the only viable option, though one they will be extremely reluctant to use."
Key quotes
"French PMI was appalling today, no doubt setting off alarm bells at ECB headquarters in Frankfurt."
"With the ECB tool kit close to empty, a slide back into recession in France and Italy could dramatically increase deflationary forces."
"Look for the ECB to maintain its verbal assault while trying to cobble together a viable plan B if the June package does not revive moribund European credit markets."
"Full-blown QE may be the only viable option, though one they will be extremely reluctant to use."