The Eurozone business activity is growing at its fastest pace in 15 years. That data is based on the Flash released by IHS Markit on Wednesday (23/June) yesterday afternoon.

From that release it can be seen that the Eurozone Manufacturing PMI Index stood at 63.1 in June. That was the same as the level in May. However, the figure is higher than the 62.4. 

Meanwhile, eurozone services PMI data is in line with the level of 58.0. It means that it was higher than 55.2 in May. Some other progresses can be seen in the market right now. 

The Business Speed Reaches the Fastest Record

Their business activities achieved the fastest record in 15 years. Demand measured from new orders also grew at the same rate. Employment growth accelerated hand in hand. 

So overall the recovery in all lines is going well and it was the great progress so far.  That was stated by Chris Williamson, a Chief Economist at IHS Markit who released the data.

Nevertheless, Williamson warned that economic uncertainty was still threatening. The reason is that the corona delta virus variant with a higher risk of transmission is still lurking. 

Similarly, the Eurozone unemployment rate is still quite high until now. It is for sure that this condition can affect some currency pairs movement and the decision that will be taken by the market participants. 

The Germany Economy is Brighter 

The German PMI data released before the Eurozone PMI also posted the positive results. It is known that the Germany's Manufacturing PMI index rose to 64.9 in June, from 64.4 earlier. The figure was higher than the expectations of 63.0. Meanwhile, the Services PMI index in that country also rose rapidly to 58.1 from 52.8. It can be noted from the data release so far. 

Further easing of the Covid-19 restrictions has provided an additional boost to Germany's economic recovery. The flash PMI rising sharply to its highest level for more than a decade is the sign. 

And with plans to lift further social restrictions in July, this strong momentum will continue into the third quarter. That was stated by  Phil Smith as the associate director at IHS Markit.

The EUR / USD Increasing 

The Solid eurozone economic data today responded quite positively by the currency pairs in the market. One of them is for sure the EUR / USD. They showed a good progress in the forex market. 

The EUR/USD stabilized with a gain of 0.05% to 1.1945. That was happened after rallying in the previous two sessions. In addition to eurozone data, the weakening of the US Dollar today also supported the strengthening of the Euro. 

The BULLISH US Dollar eased after The Fed Chairman Jerome Powell ruled out the possibility of monetary tightening. That was arguing that the surge in US inflation was only temporary. 

In his speech earlier yesterday (June 23), the chairmen clearly affirmed the Fed's commitment to support the recovery of the labor sector in the United States. It becomes their concern as well. 

The Interest Rate will be not Changed

The Fed chairman also said that the central bank will not change the interest rate soon based solely on the worry of a surge in inflation. They won’t increase the rates first due to concerns over the recent surge in inflation which is likely to be temporary. 

Instead, they are going to wait for evidence of the real inflation occurred or other imbalances. The surge in U.S. inflation that touched a recent 13-year high has prompted a backlash from many, not least the US Congress.

That is which urged the Fed to intervene immediately. However, Powell emphatically told that the rising inflation in America in recent months does not necessarily reflect the broader state of economic recovery.