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 lower at 56.5 in November from October’s 58.2 final print while the index for the services sector is likely to contract further to 46.3 this month vs. 49.5 last.

The forecast for the Eurozone flash manufacturing PMI (due at 0900 GMT) shows 53.1 for November vs. 54.8 seen in the previous month. The Eurozone services sector PMI is seen deteriorating to 42.5 in the reported month vs. October’s 46.9.

How could they affect EUR/USD?

The EUR/USD pair is heading towards Friday’s high of 1.1891, mainly helped by broad-based US dollar weakness. Fresh optimism over the covid vaccines and US fiscal stimulus lifts market sentiment and weighs down on the safe-haven dollar.

“From a technical perspective, nothing seems to have changed much for the pair and any further positive move is more likely to remain capped near-monthly tops, around the 1.1920 region. Bulls might still wait for some follow-through buying above the mentioned hurdle before positioning for additional gains towards the key 1.2000 psychological mark. A subsequent move beyond YTD tops, around the 1.2010 region, should pave the way for an extension of the upward trajectory and push the pair towards the 1.2065-75 intermediate resistance en-route the 1.2100 round-figure mark,” explains FXStreet’s Analyst Haresh Menghani.

“On the flip side, the 1.1850 area now seems to have emerged as immediate strong support. This is followed by last week’s low, around the 1.1815 region, and the 1.1800 mark,” Haresh adds.

Key notes

Eurozone PMIs Preview: Three reasons why expectations are too low, EUR/USD may rise

EUR/USD: Eurozone PMIs will test Euro's resilience

The week ahead: Three things to watch

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.