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 markets as well.
The forecast for the Eurozone flash manufacturing PMI shows 58.1 for March, slightly lower than previous month's reading of 58.6, and the Eurozone services sector is also expected to come in a tad weaker at 56.0 in the reported month, down from 56.2 booked in February.
The flash manufacturing PMI for Germany is also expected to tick lower to 59.8 when compared to the final 60.6 result booked previously. While, the index for the services sector is expected to ease to 55.0 in March, against 55.3 last.
How could affect EUR/USD?
A positive surprise in the manufacturing PMI reports could offer fresh impetus to the ongoing EUR/USD up-move, opening doors for a move towards reclaiming the 1.2400 handle, above which the momentum could get extended towards 1.2445-50 intermediate hurdle en-route the key 1.2500 psychological mark.
On the flip side, if the readings show a big-than expected drop, the spot could head back towards testing the 1.23 handle, which if broken could accelerate the fall towards 1.2240 horizontal support.
EUR/USD undecided after FOMC statement, remains around 1.2260/80
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.