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 0730 GMT, is seen improving further to 48.0 in July from June’s 45.2 final print while the index for the services sector is seen expanding to 50.5 this month vs. 47.2 last.
The forecast for the Eurozone flash manufacturing PMI (due at 0800 GMT) shows 50.0 for July vs. 47.4 seen in the previous month. The Eurozone services sector PMI is seen bouncing to 51.0 in the reported month vs. 48.3 previous.
How could they affect EUR/USD?
The EUR/USD pair has bounced back above 1.1600, now trading at 1.1610, up 0.13% on the day.
“From a technical perspective, the near-term bias seems tilted firmly in favour of bulls. However, the pair’s inability to capitalize on the move/sustain above the 50% Fibonacci level of the 1.2555-1.0636 downfall warrant some caution before placing aggressive bullish bets amid overbought conditions on the daily chart. That said, some follow-through buying beyond the overnight swing high, around the 1.1625 region, now seems to accelerate the momentum towards the 1.1700 round-figure mark. The pair might then aim to test the next major hurdle near the 1.1745-50 region,” explains FXStreet’s Analyst Haresh Menghani.
“On the flip side, immediate support is now pegged near the 1.1540 level, below which the pair could accelerate the slide further towards the key 1.1500 psychological mark,” Haresh adds.
Key notes
Eurozone PMIs Preview: Return to expansion territory to complete EUR/USD bullish week
EU Parliament not ready to swallow EU budget cuts (yet)
Euro rallies 9 out of last 10 days, is 1.20 next?
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.