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 48.1 for May vs. 47.9 seen in the previous month. The Eurozone services sector PMI is seen coming in at 53.0 in the reported month versus 52.8 last.           

The flash manufacturing PMI for Germany is seen arriving at 44.8 in May, up from April’s 44.4 final print while the index for the services sector is expected to tick lower to 55.5 this month versus 55.7 seen in the previous month.

How could they affect EUR/USD?

“The Technical Confluences Indicator shows that EUR/USD faces resistance at 1.1165 which is the convergence of the Bollinger Band 4h-Middle, the Fibonacci 38.2% one-day, the Fibonacci 23.6% one-month, and the Simple Moving Average 5-one-day. If euro/dollar manages to break higher, it faces an even more considerable cap at 1.1195 where we see a dense cluster including the SMA 10-1d, the Fibonacci 38.2% one-month, the SMA 100-4h, the Pivot Point one-day R2, the Fibonacci 38.2% one-week, and more.  Looking down, significant support is only at 1.1113 where we see the PP one-month S1, last month's low, and the PP 1d-S3 all converge”, FXStreet’s Senior Analyst Yohay Elam notes.

 Key Notes

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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.