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 forecast for the Eurozone flash manufacturing PMI shows 47.9 for April vs. 47.5 seen in the previous month. The Eurozone services sector PMI is seen coming in at 53.2 in the reported month versus 53.3 last.
The flash manufacturing PMI for Germany is seen arriving at 45.0 in April, a tad firmer from March’s 44.1 final print while the index for the services sector is expected to tick lower to 55.1 this month versus 55.4 seen in the previous month.
How could they affect EUR/USD?
Upbeat manufacturing PMI readings could help the EUR/USD pair with a sustained break above the 1.1325 (double top). Above which the upside momentum could gain traction, with eyes set on 1.1348/50 (100-DMA/ psychological levels). A break above the last could open doors for a test of 1.1393/1.1400 (Mar 22 high/ round number).
On the flip side, if the readings miss the consensus forecasts, the spot could extend southwards in a bid to test the 1.1279 (Apr 16 low), below which the next supports are placed at 1.1260 (20-DMA) and 1.1228 (Apr 10 low).
Key Notes
Europe: Focus on PMIs today – TDS
EUR/USD Technical Analysis: 1.1325 “double-top” gains attention ahead of Eurozone PMIs
EUR/USD to drop 50-70 pips on disappointing Eurozone PMIs – Danske Bank
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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