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 forecast for the Eurozone flash manufacturing PMI shows 49.5 for March vs. 49.3 seen in the previous month. The Eurozone services sector PMI is seen coming in at 52.7 in the reported month versus 52.8 last.

The flash manufacturing PMI for Germany is seen arriving at 48.0 in March, a tad firmer from February’s 47.6 final print while the index for the services sector is expected to tick lower to 54.8 this month versus 55.3 seen in the previous month.

How could they affect EUR/USD?

Upbeat manufacturing PMI readings could help the EUR/USD pair regain 1.1400 (round number). Above which the upside momentum could gain traction, with eyes set on 1.1437/50 (Mar 21 and 22 high). A sustained break above the last could open doors for a test of 1.1479 (200-DMA/ daily classic R2).

On the flip side, if the readings miss the consensus forecasts, the spot could stall the recovery momentum and turn south in a bid to test the 1.1355 (50-DMA), below which the next supports are placed at 1.1300 (key support) and 1.1274 (Feb 19 low).

Key Notes

Eurozone: Focus on PMIs data – TDS

EUR/USD Forecast: Rejected near 50% Fibo. level; set to resume the previous bearish trend?

EUR futures: consolidation likely near term

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.