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 44.5 in December, up from November’s 44.1 final print while the index for the services sector is expected to rise to 52.0 this month vs. 51.7 last.
The forecast for the Eurozone flash manufacturing PMI (due at 0900 GMT) shows 47.1 for December vs. 46.9 seen in the previous month. The Eurozone services sector PMI is seen a touch higher at 52.0 in the reported month vs. 51.9 prior.
How could they affect EUR/USD?
On a downside surprise, the spot could meet fresh supply and fall back to test the 10-DMA support at 1.1105, a break below which could open floors towards the 1.1070 demand area, the confluence of 20, 50 and 100-DMA.
Should the data better estimates, the rates could regain the 200-DMA at 1.1153, above which the next upside target awaits at 1.1200 (Dec 13 high).
At the press time, the EUR/USD pair is seen flirting with fresh session tops at 1.1145, up +0.21% so far.
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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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