By IFCMarkets

Better than expected French data bullish for FR40

French economic data in the last couple of weeks were positive on balance. According to Markit, France’s Manufacturing PMI increased to 52.3 in June of 2020 from 40.6 in May, better than market expectations of 52.1. And Services PMI increased to 50.7 in June from 31.1 in May, when a reading of 50.3 was expected. Readings above 50 indicate activities expansion, below indicate contraction. So the contraction in private business sector halted and an expansion was achieved. Better data are bullish for FR40. At the same time deficits of both trade balance and current account widened in May when a narrowing was expected. Deterioration of France’s economic performance is a downside risk for stock market index.

Summary of technical analysis

Market Analysis provided by IFCMarkets