When are the German/ Eurozone flash PMIs and how could they affect EUR/USD?
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 is seen arriving at 44.5 in June, a shade higher from May’s 44.3 final print while the index for the services sector is expected to hold steady at 55.4 this month.
The forecast for the Eurozone flash manufacturing PMI shows 48.0 for June vs. 47.7 seen in the previous month. The Eurozone services sector PMI is seen unchanged at 52.9 in the reported month.
How could they affect EUR/USD?
“All in all, there are greater chances for Markit's PMIs to beat expectations or at least for a positive EUR/USD reaction to the data as expectations may be too low, the ECB's easing intentions are already known, and the FXStreet Surprise Index has been showing a substantial improvement”, FXStreet’s Senior Analyst Yohay Elam notes.
Therefore, the spot could stall its corrective slide and bounce-back to regain the 1.13 handle on upbeat readings, opening doors for a retest of 1.1315 (6-day highs). A break above which the buyers would target the 1.1345/49/51 (3-month tops/ 200-DMA) confluence area.
Should the data disappoint markets, the corrective downside in EUR/USD should gather pace, as the bear look to test the NY low of 1.1271. The selling pressure could accentuate below the last, with 1.1264 (10-DMA) and 1.1244 (5-DMA) the next supports on sight.
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.
This article is published only for general use basic informatory purposes and should not be considered or depended on as a financial or investment advice. Investors should make sure that they understand the risks and seek independent financial advice at all times. CFDS ARE COMPLEX INSTRUMENTS AND COME WITH A HIGH RISK OF LOSING MONEY RAPIDLY DUE TO LEVERAGE.