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, due at 0830 GMT, is seen contracting further to 40.0 in March from February’s 49.8 final print while the index for the services sector is seen weaker at 42.5 this month vs. 52.5 last.

The forecast for the Eurozone flash manufacturing PMI (due at 0900 GMT) shows 39.0 for March vs. 49.2 seen in the previous month. The Eurozone services sector PMI is also seen sharply lower at 38.4 in the reported month vs. 52.6 previous.

How could they affect EUR/USD?

The PMI readings are expected to paint a gloomy picture of the Euro area economies, in the face of the coronavirus pandemic and its negative impact on the economy.

Should the data disappoint the estimates, EUR/USD could reverse the recovery momentum to test the daily low of 1.0752. A failure to resist above the latter, the bears would target the 5-DMA of 1.0726, below which a test of the multi-year low near 1.0635 is inevitable.

In-line with expectations outcome could offer some comfort to the EUR bulls, allowing the spot to keep its recovery mode intact above the 1.08 handle.

At the press time, the EUR/USD pair is seen hovering around 1.0830, gaining 1% on the day.

Key notes

EUR/USD: Bulls await a move beyond 1.0830 resistance

Eurozone PMIs Preview: How calamitous is the coronavirus carnage?

EUR Futures: Extra gains not ruled out

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.