EZ PMIs Preview: EUR/USD may have already priced the downfall

Markit's Purchasing Managers' Indexes are expected to be extremely low but is likely priced in and EUR/USD has room to rise or shrug off bad news, according to FXStreet’s analyst Yohay Elam.

Key quotes

“Preliminary data for the whole of the eurozone carries the worst expectations. Figures for France are set to extend their falls while economists forecast German statistics to be marginally better.” 

“In the scenario that over-pessimism is the case this time as well, EUR/USD has room to rise if the data beats expectations.” 

“Downbeat estimates do not prevent actual statistics to fall even lower as Italy's sub-20 figures have proved. In that case, EUR/USD may edge lower.”