European session review: EUR advances after data show Eurozone's manufacturing activity improves to record high in April

EUR rose against most of its major rivals in the European session on Monday, supported by data from IHS Markit, which showed that Eurozone’s manufacturing activity saw a record expansion in April.

According to the report, IHS Markit Eurozone Manufacturing PMI stood at 62.9 in April, little-changed from a flash estimate of 63.3 and above March's final reading of 62.5. This was the highest level since data collection began in June 1997 and marked the tenth successive month that the indicator has posted above the 50.0 no-change threshold.

In addition, Germany’s retail sales data for March were much better than forecast. Destatis reported that the German retail sales rose 7.7% m/m in March, following a revised 2.7% gain in February. Economists had expected a 3% m/m advance. This was the largest increase since a record 12.9% climb in May 2020. On a yearly basis, retail sales surged 11%, the most on record.

Accelerating vaccine rollout in the EU also added to the positive sentiment. The European Commission (EC) proposed today the EU’s member state to loosen restrictions for fully vaccinated travelers.