In the euro area, focus turns to the May PMIs. The economy has started the year on a strong footing with composite PMI above 50 in the past two months. We expect that the service PMIs will remain around the 53 level while the manufacturing sector should rebound slightly to 46, still indicating weakness. We will look out for especially the services price and employment indexes as these remain strong, leaving upside risks to domestic inflation, and in turn may reduce the ECB's rate cut appetite in the second half of the year.