PMI Suggesting Further Euro Strength

GDP growth in the U.S. was 0% the last quarter and that is consistent with the PMI going below 50 in the U.S. While the U.S. economy is deteriorating, the PMI in the eurozone is in a rising trend again and soon will catch up to the PMI of the U.S. Maybe we can even get a positive GDP growth in the eurozone at some point.

This trend is positive for the euro going forward. But we need to be aware that the ECB has some bullets left to devalue the euro soon...

Chart 1: PMI Eurozone Vs. PMI U.S.