Decorating the opening of the European session market was the publication of manufacturing and services PMI data from the European Zone and the UK which showed mixed readings in March.
Both sectors began to show slower growth in the European Zone last month as they may have been affected by ongoing supply chain disruptions and unrest from the Ukraine-Russia war.
German manufacturing activity declined to a three -month low, but still showed expansion. Sentiment in the sector was plagued by concerns from rising inflationary pressures and war in Eastern Europe.
While service activity also showed a reduction in Germany, but stronger in France. Uncertainty in supply constraints and declining export demand following the war in Ukraine slightly affected growth.
Even so, the euro rose slightly as an initial reaction to the release of the data by continuing to trade around the price of 1,100 against the strong US dollar.
Next, examining data readings published from the UK, the manufacturing sector continued to show a slowdown by declining to a 13 -month low in March.
This was influenced by manufacturing output rising at the weakest rate since 2021 with growth heavily influenced by supply shortages and growing inflationary pressures following the war in Ukraine.
On the other hand, services activity increased at the fastest rate in nine months, amid a further economic reopening from the closure of Covid-19.
Preliminary reactions showed the pound changed little after slipping lower before the release of the data, seeing it trade at around 1.3100 against the USD.
