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 markets as well.

The forecast for the Eurozone flash manufacturing PMI shows 55.0 for June, lower than previous month's reading of 55.5, and the Eurozone services sector is also expected to come in a tad weaker at 53.7 in the reported month versus 53.8 booked in June.

The flash manufacturing PMI for Germany is also expected to drop to 56.2 when compared to the final 56.9 result booked previously. While the index for the services sector is seen unchanged at 52.1 in June.

How could they affect EUR/USD?

An upside surprise in the manufacturing PMI readings could offer fresh boost to the EUR bull, which could send the EUR/USD pair further towards the 1.1700 supply zone. A break above which the momentum could accelerate towards 1.1744 (Jun 4 high). A sustained break above the last could open doors for a test of 1.1866 (50-DMA).

On the flip side, if the readings show a big-than expected drop, the spot could change course and drop back below the 1.1600 levels, below which the next support is placed at 1.1582 (daily pivot).

Key Notes

Eurozone: Further deterioration in manufacturing PMIs? - TDS

Eurozone: Focus on PMI data – Danske Bank

What’s Next After EUR/USD Bounce at 1.15?

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.