Eurozone businesses continued its strong performance in May. The Markit's Flash Composite Purchasing Managers' Index for May, which is used as a guide to measure the economic performance, matched April’s reading of 56.8 –the highest since April 2011. A reading above 50 indicates growth. With such strong data, we reiterate our view that pressure will mount on the European Central Bank (ECB) to relook at its current monetary policy. We can expect the tone of ECB to start considering withdrawing its stimulus programme. That will be a huge booster to the euro especially at a time when shockwaves are in the US markets and the UK in the midst of an election. Eurozone appears somewhat settled.

• Eurozone businesses continued its strong performance in May. The Markit's Flash Composite Purchasing Managers' Index for May, which is used as a guide to measure the economic performance, matched April’s reading of 56.8 – the highest since April 2011. A reading above 50 indicates growth.

• The healthy PMI reading suggests businesses are having difficulties meeting the growing demand. That means euro’s economic momentum is well maintained. Supporting our view is the manufacturing PMI which rose to 57.0 in May from 56.7 in April, the highest since April 2011. Meanwhile, the services PMI strengthened to 56.2.

• With such strong data, we reiterate our view that pressure will mount on the European Central Bank (ECB) to relook at its current monetary policy. We can expect the tone of ECB to start considering withdrawing its stimulus programme. That will be a huge booster to the euro especially at a time when shockwaves are in the US markets and the UK in the midst of an election. Eurozone appears somewhat settled.

Source: AmInvest Research - 24 May 2017