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 44.0 in September, up from August’s 43.5 final print while the index for the services sector is expected to drop to 54.3 this month vs. 54.8 last.

The forecast for the Eurozone flash manufacturing PMI shows 47.3 for Sept vs. 47.0 seen in the previous month. The Eurozone services sector PMI is seen lower at 53.3 in the reported month vs. 53.5 prior.

How could they affect EUR/USD?

On a negative surprise, the spot could break the recent range, opening floors for a test of the recent support near 1.0990.  A beak below which would expose the multi-year lows at 1.0926.

Should the data surprise the markets to the upside, the rates could see a bounce towards 1.1075 (intermittent tops). Buyers will gain momentum above the last, paving the way for a test of 1.1100 (round figure).

Meanwhile, the EUR’s reaction to the data could probably be limited, as markets remain in a wait-and-see mode ahead of the ECB President Draghi’s testimony on the monetary policy before the European Parliament.

At the press time, the EUR/USD pair is seen extending its side trend around 1.1020 levels, almost unchanged on the day.

 Key Notes

Euro area: Preliminary September PMI prints in spotlight – TD Securities

EUR/USD forecast: Range play intact ahead of Euro-zone PMIs

EUR Futures: extra losses still on the cards

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.