When are the German/ Eurozone flash PMIs and how could they affect EUR/USD?
|German/ Eurozone flash PMIs Overview
Amongst the Euro area economies, the German and the composite Eurozone PMI reports hold more relevance, in terms of its impact on the European currency and the related markets as well.
The flash manufacturing PMI for Germany, due at 0830 GMT, is seen arriving at 42.9 in November, up from October’s 42.1 final print while the index for the services sector is expected to rise to 52.0 this month vs. 51.6 last.
The forecast for the Eurozone flash manufacturing PMI (due at 0900 GMT) shows 46.4 for November vs. 45.9 seen in the previous month. The Eurozone services sector PMI is seen higher at 52.5 in the reported month vs. 52.2 prior.
How could they affect EUR/USD?
On a downside surprise, the spot could meet fresh supply and fall back to test the 50-DMA support at 1.1044, a break below which could open floors towards 1.1000 (psychological levels) and 1.0989 (Nov-mid lows).
Should the data better estimates, the rates could see a test of the 1.1100 barrier, above which the next resistances are aligned at 1.1150 and 1.1174 (200-DMA).
Meanwhile, the EUR’s reaction could be also influenced by the new ECB President Lagarde’s first policy speech that is also due at 0830 GMT.
At the press time, the EUR/USD pair is seen printing fresh session tops at 1.1070, up +0.12% so far.
Key Notes
EUR/USD Forecast: Seems vulnerable, focus on Lagarde's speech, Euro-zone PMIs
EUR Futures: pullbacks appear shallow
All eyes on ECB President Lagarde's first real policy speech – TD Securities
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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