When is German/ Eurozone flash PMI and how could affect EUR/USD?
|German/ Eurozone flash PMI 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 56.3 for April, slightly higher than the 56.2 recorded a month ago, and the Eurozone services sector is expected to show no change and remain steady at 56.0, as seen in March.
The flash manufacturing PMI for Germany is expected to tick lower to 58.0 compared to the final 58.3 result booked previously. While, the index for the services sector is also seen a tad weaker at 55.5 in April, against 55.6 last.
How could affect EUR/USD?
Upbeat PMI reports could offer the much-needed impetus to the EUR bulls, taking the rate to the next resistance placed at 1.0777 (3-week tops), beyond which 1.0800 (round number) could be tested, paving way for a test of 1.0827 (Mar 29 high).
On the flip side, if the readings disappoint, the spot could drop below 1.0707/05 (Daily low/ 5-DMA), below which 1.0666/63 (50 & 10-DMA) could be tested.
Continuation of the recent bullish momentum cannot be ruled out, given last month’s solid improvement.
Key notes
Eurozone: Composite PMI likely to increase to 56.6 in April from 56.4 in March - Nomura
The research team at Nomura expects the euro area composite PMI to increase to 56.6 in April from 56.4 in March.
Eurozone: Upward momentum in PMIs to continue - TDS
The Eurozone has seen substantial upward momentum in its PMIs over the last year, and analysts at TDS look for that trend to continue with the flash April prints today.
About German/ Eurozone flash PMI Overview
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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