When are the German/Eurozone PMIs and how could they impact the EURUSD pair? Look for the answers in the following 23 August EURUSD Impact Analysis.
23 August, OctaFX – 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.
German/ Eurozone flash PMIs Overview
The forecast for the Eurozone flash manufacturing PMI shows 55.0 for August, lower than previous month’s reading of 55.1, and the Eurozone services sector is expected to come in a tad firmer at 54.4 in the reported month versus 54.2 booked in July.
The flash manufacturing PMI for Germany is also expected to drop to 56.5 when compared to the final 56.9 result booked previously. While the index for the services sector is seen arriving at 54.3 this month versus 54.1 last.
23 August EURUSD Impact Analysis
An upside surprise in the manufacturing PMI readings could offer a fresh boost to the EUR bull, which could send the EURUSD pair back to test the 1.1600 level (round number/ daily top). A break above which the momentum could accelerate towards 1.1623 (10-day highs). A sustained break above the last could open doors for a test of 1.1700 (psychological levels).
On the flip side, if the readings show a big-than expected drop, the spot could break lower to test the daily lows of 1.1543, below which the next supports are placed at 5-DMA at 1.1529 and 1.1453 (10-DMA).
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 about Eurozone Flash PMI: 23 August EURUSD Impact Analysis was provided by OctaFX. It should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.