Key news
– Positive sentiment driven by ECB and US jobless claims
– Chinese service sector PMI fell to 54.5 in April
– Hollande says he needs Merkel to meet him halfway on banking union
Markets overnight
The positive sentiment caused by US jobless claims hitting a five-year low and the ECB not only cutting the refi rate, but also opening the door for negative deposit rates, continued throughout the US session. Chinese service sector PMI fell in April to 54.5 from a reading of 55.6 in March. New orders fell below 50, emphasising that the Chinese recovery is somewhat sluggish and fragile at the moment. The PMI for construction fell slightly from 62.5 to 62.4 in April, which is nevertheless a high level.
Click here to read the full report: FX Daily
Danske Bank