When are the German/ Eurozone flash PMIs and how could they affect EUR/USD?

Dhwani Mehta FXStreet

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 42.9 in November, up from October’s 42.1 final print while the index for the services sector is expected to rise to 52.0 this month vs. 51.6 last.

The forecast for the Eurozone flash manufacturing PMI (due at 0900 GMT) shows 46.4 for November vs. 45.9 seen in the previous month. The Eurozone services sector PMI is seen higher at 52.5 in the reported month vs. 52.2 prior.

How could they affect EUR/USD?

On a downside surprise, the spot could meet fresh supply and fall back to test the 50-DMA support at 1.1044, a break below which could open floors towards 1.1000 (psychological levels) and 1.0989 (Nov-mid lows).

Should the data better estimates, the rates could see a test of the 1.1100 barrier, above which the next resistances are aligned at 1.1150 and 1.1174 (200-DMA).

Meanwhile, the EUR’s reaction could be also influenced by the new ECB President Lagarde’s first policy speech that is also due at 0830 GMT.

At the press time, the EUR/USD pair is seen printing fresh session tops at 1.1070, up +0.12% so far.

Key Notes

EUR/USD Forecast: Seems vulnerable, focus on Lagarde's speech, Euro-zone PMIs

EUR Futures: pullbacks appear shallow

All eyes on ECB President Lagarde's first real policy speech – TD Securities

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.

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.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.