-Christian Schulz, senior economist at Berenberg Bank
Analysts are still trying to predict when Mario Draghi will pull the trigger; however, the recent reports can boost his confidence about the ongoing recovery in the bloc. Moreover, inflation, Draghi's main headache, is projected to pick up in April. The single currency seems to be bulletproof for any shakes, as the most traded currency pair was still trading comfortably above 1.38 level. Another slew of positive data unveiled on Wednesday, as Markit said the PMI flash indicators of activity in the 18-nation economy's business sector soared to the highest since May 2011. The headline flash composite PMI, which is considered to be a good gauge of overall economic growth, climbed to 54.0 this month following March's final reading of 53.1 and beating analysts' expectations for 53.0. The index moved further away from the 50 threshold, which separates growth from contraction. Separately, both manufacturing and services PMI surprised markets to the upside. Amid rising backlogs of work companies are projected to pick up the staff in order to expand capacity. It should provide additional boost to the economy, while the labour market has a potential to move lower from the record-high. The outlook is not so bright, keeping in mind Ukraine tensions and global uncertainty, surrounding the world's first and second largest economies.
A release of weak French PMI pushed the Euro lower, while overall figures provided a boost to 1.3854.
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