German PMI to cement EUR/USD under parity – Societe Generale

Dhwani Mehta FXStreet

Analysts at Societe Generale predict that a poor Germany’s Preliminary S&P Global Manufacturing is likely to keep the EUR/USD pair pressured below the parity mark, as it would mean that the German economy is on the brink of a recession.

Key quotes

“In Europe, national surveys have been stronger than the PMI data, which may give some hope for a stronger figure, but in Germany, gas prices, the water level in the Rhine and inflation are having a devastating impact on business confidence.”

“A very bad German PMI might be enough to cement EUR/USD under parity, even if other countries fare better.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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