European markets are mostly trading lower and volume is thin as traders are enjoying the long weekend break. The euro has come under fresh pressure this morning on the back of mixed bag of economic data. On one hand, we have Italy, which has produced astonishing reading, boosting sentiment amid traders.
The Italian manufacturing PMI data final print was stout with the reading of 53.8, well above the forecast of 53.4. But, the problem child of the euro zone- France, produced a headline, which traders did not like very much at all. The manufacturing PMI data for France came in at 48- and this has increased the sell off for the euro. Although, German manufacturing PMI data was strong and better than forecast, but still we have the euro trading near the sessions low.
Last week, it was all about the short squeeze for the euro, but it seems that the picture is changing this week ahead of extremely volatile week, which is full with economic data and cocktail of political sparring- not to mention mother of all data- the US non farm payroll is also due on Friday. We are expecting extreme volatility during this week.