When are German/ Eurozone flash PMIs and how could they affect EUR/USD?
|German/ Eurozone flash PMIs Overview
Amongst the Euro are economies, the PMI reports from Germany and Eurozone as an entire bloc hold more relevance, in terms of its impact on the European currency and the markets as well.
The forecast for the Eurozone flash manufacturing PMI shows 57.2 for July, slightly lower than the 57.4 recorded a month ago, and the Eurozone services sector is expected to come in a tad higher at 55.5 versus 55.4 seen in June.
The flash manufacturing PMI for Germany is expected to tick lower to 59.2, when compared to the final 59.6 result booked previously. While, the index for the services sector is expected to improve to 54.3 in July, against 54.0 last.
How could affect EUR/USD?
A positive surprise in the manufacturing PMI reports could offer the much-needed impetus to the EUR bulls, taking the rate back to 1.1685 (2-year tops), beyond which 1.1700 (round number) could be tested, paving way for a test of 1.1715 (Aug 2015 high).
On the flip side, if the readings disappoint, the spot could drop below 1.1629/18 (5-DMA/ Jul 21 low), below which 1.1552 (10-DMA) could be tested.
Key notes
Eurozone and US PMIs amongst market movers today – Danske Bank
EUR/USD recedes from 2017 tops at 1.1685, EZ PMIs eyed
About German/ Eurozone flash PMIs
The Manufacturing Purchasing Managers Index (PMI) released by the Markit Economics captures business conditions in the manufacturing sector. As the manufacturing sector dominates a large part of total GDP, the manufacturing PMI is an important indicator of business conditions and the overall economic condition in the Euro Zone. Usually a result above 50 signals is bullish for the EUR, whereas a result below 50 is seen as bearish.
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