TRENDING:

GBP/USD

XAU/USD

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 their impact on the European currency and the related markets as well.

The flash manufacturing PMI for Germany, due at 0830 GMT, is seen a tad weaker at 65.9 in May from April's 66.2 final print while the services sector is likely to expand, with a 52.0 figure seen this month vs. 49.9 last.

The forecast for the Eurozone flash manufacturing PMI (due at 0900 GMT) shows 62.5 for May vs. 62.9 seen in the previous month. The Eurozone services sector PMI is seen improving to 52.3 in the reported month vs. April’s 50.5.

How could they affect EUR/USD?

The EUR/USD pair is holding the higher ground near 1.2240, as the US dollar resumes decline to test the multi-month lows of 89.69, at the time of writing.

FXStreet’s Analyst, Haresh Menghani, notes: “A subsequent move beyond the 1.2240-45 horizontal resistance will reaffirm the constructive set-up and allow bulls to aim back to reclaim the 1.2300 mark. The momentum could further get extended towards YTD tops, around mid-1.2300s touched on January 6. On the flip side, the 1.2200 round-figure mark now seems to protect the immediate downside. Any subsequent fall might still be seen as a buying opportunity near a previous strong resistance breakpoint, now turned support near the 1.2160-70 region.”

Key notes

Elliott Wave View: EURUSD looking to end a diagonal [Video]

UK Retail Sales and flash PMIs in focus

EUR/USD Weekly Forecast: Fed may fuel the next leg of rally, bulls eye 1.2240

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.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD rebounds after falling toward 1.1700

EUR/USD gains traction and trades above 1.1730 in the American session, looking to end the week virtually unchanged. The bullish opening in Wall Street makes it difficult for the US Dollar to preserve its recovery momentum and helps the pair rebound heading into the weekend.

GBP/USD steadies below 1.3400 as traders assess BoE policy outlook

Following Thursday's volatile session, GBP/USD moves sideways below 1.3400 on Friday. Investors reassess the Bank of England's policy oıtlook after the MPC decided to cut the interest rate by 25 bps by a slim margin. Meanwhile, the improving risk mood helps the pair hold its ground.

Gold stays below $4,350, looks to post small weekly gains

Gold struggles to gather recovery momentum and stays below $4,350 in the second half of the day on Friday, as the benchmark 10-year US Treasury bond yield edges higher. Nevertheless, the precious metal remains on track to end the week with modest gains as markets gear up for the holiday season.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid bearish market conditions

Bitcoin (BTC) is edging higher, trading above $88,000 at the time of writing on Monday. Altcoins, including Ethereum (ETH) and Ripple (XRP), are following in BTC’s footsteps, experiencing relief rebounds following a volatile week.

How much can one month of soft inflation change the Fed’s mind?

One month of softer inflation data is rarely enough to shift Federal Reserve policy on its own, but in a market highly sensitive to every data point, even a single reading can reshape expectations. November’s inflation report offered a welcome sign of cooling price pressures.

XRP rebounds amid ETF inflows and declining retail demand demand

XRP rebounds as bulls target a short-term breakout above $2.00 on Friday. XRP ETFs record the highest inflow since December 8, signaling growing institutional appetite.