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 falling further to 56.5 in February from January’s 57.1 final print while the services sector is likely to contract further to 46.5 this month vs. 46.7 last.

The forecast for the Eurozone flash manufacturing PMI (due at 0900 GMT) shows 54.4 for February vs. 54.8 seen in the previous month. The Eurozone services sector PMI is seen improving to 45.9 in the reported month vs. January’s 44.4.

How could they affect EUR/USD?

The EUR/USD pair is attempting a corrective pullback, although the upside appears elusive, as the US Treasury yields resume their advance on expectations of a bigger US fiscal stimulus package.

Heading into the preliminary PMIs, the spot trades at 1.2095, up 0.06% on a daily basis, having hit fresh session highs at 1.2101 in the last minutes.

“Resistance awaits at 1.2110, which provided support last week and is also where the 50 SMA hits the price. It is followed by 1.2150, a swing high and then by 1.2170, the February top,” explains FXStreet’s Senior Analyst Yohay Elam.

“Some support awaits at 1.2080, the daily low, followed by 1.2055, which is a critical cushion and a separator of ranges. Further down, 1.2020 and 1.20 await EUR/USD,” Yohay adds.

Key notes

ECB's Villeroy: Must act according to our mandate, as long as low inflation persists

Forex Today: Dollar, Bitcoin, gold and stocks all retreat ahead of PMIs, stimulus news

EUR/USD holds below 1.21 ahead of preliminary PMIs

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.