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 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 firmer at 60.8 in March from February’s 57.1 final print while the services sector is likely to slow down its contraction, with a 46.2 figure seen this month vs. 45.7 last.

The forecast for the Eurozone flash manufacturing PMI (due at 0900 GMT) shows 57.7 for February vs. 57.9 seen in the previous month. The Eurozone services sector PMI is seen improving to 46.0 in the reported month vs. February’s 45.7.

How could they affect EUR/USD?

The EUR/USD pair has come under renewed selling pressure ahead of the European open, now accelerating its decline towards 1.1800, as the US dollar buying picks up steam amid the downbeat market mood.

Heading into the preliminary PMIs, the spot trades at 1.1825, losing 0.20% on a daily basis, reaching fresh four-month lows.

Jason Sen at DayTradeIdeas notes: “EURUSD important 200-day moving average support at 1.1860/50 & more important 10-year trend line support at 1.1840/20. Try longs with stops below 1.1790. A break lower is a medium-term sell signal.”

“Minor resistance at 1.1930/40. Strong resistance at 1.1985/95. Try shorts with stops above 1.2010. A break higher is a medium-term buy signal,” Sen adds.

Key notes

EUR/USD to slide to 1.1750 on a break below the recent 1.1835/31 low – Commerzbank

EU-US growth divide continues

Why the dollar is rising while yields are falling, blame it on the taxman

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.