When are the German/ Eurozone flash PMIs and how could they affect EUR/USD? Find the answer in this 23 April Eurozone PMI Report EURUSD Impact Analysis.
23 April, GKFX – 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 markets as well.
The forecast for the Eurozone flash manufacturing PMI shows 56.1 for April, lower than previous month’s reading of 56.6, and the Eurozone services sector is also expected to come in weaker at 54.6 in the reported month, down from 54.9 booked in March.
The flash manufacturing PMI for Germany is also expected to tick lower to 57.5 when compared to the final 58.2 result booked previously. While, the index for the services sector is expected to ease to 53.7 in April, against 53.9 last.
23 April Eurozone PMI Report EURUSD Impact Analysis
A positive surprise in the manufacturing PMI reports could offer some respite to the EUR bulls, taking the EUR/USD pair back towards 1.2300 handle, above which the momentum could get extended towards 1.2350 intermediate hurdle en-route the key 1.2400 psychological mark.
On the flip side, if the readings show a big-than expected drop, the spot could fall further towards the 1.2200 support area, below which a test of 1.2155 (Feb low) is imminent.
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.
This article 23 April Eurozone PMI Report EURUSD Impact Analysis was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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