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Purchasing managers’ indices in France exceeded expectations after many months of disappointments. The data for June still points to contraction, but at least the pace is slower.

The French figures are the first: German and all-European figures will follow. EUR/USD remains stable for now.

The initial read (Flash) for the manufacturing sector rose from 44.7 to 45.3 points, better than 44.6 that was expected. The services sector enjoyed a stronger  improvement: from 45.1 to 47.3 points. It seems that after the downfall in May, there was some correction in June.

EUR/USD is currently trading at 1.2680, above the 1.2660 line. The pair traded in a roller coaster manner: the decision of the Fed to extend “Operation Twist” send it tumbling down, but it recovered quickly on hopes that Angela Merkel would be flexible on debt crisis solutions.

US figures will dominate the scene later on, with unemployment figures, existing home sales and the early  Philly Fed Manufacturing Index set to rock markets.