The euro zone manufacturing PMI was just above the 50.0 level signalling a marginal improvement in business conditions,

Without Germany seeing its improvement in growth, we would have seen a much stronger downturn (in the euro zone index),

There are concerns that the revival in euro zone business confidence has been driven by the external sector, which could be undermined if the euro keeps on rising.

The overall PMI shows we are still in rate cut territory. But the PMI has been below this (current) level and the ECB has not cut rates, so this survey on its own will add little to the chance of a rate cut.

The latest data - including the improvement in manufacturing activity and current strength of the housing market - has increased the odds that the eventual next move in interest rates will be up.

I hope Greece is going to remain in the Euro zone.