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EURUSD Outlook: Strength Ebbs as PMIs Point to Flat Eurozone Economy

EURUSD Outlook: Strength Ebbs as PMIs Point to Flat Eurozone Economy

Martin Essex, MSTA, Analyst

EUR price, news and analysis:

  • EURUSD has climbed this month but its rally looks to be reversing.
  • The pair has not been helped by Eurozone PMIs implying that a possible pickup in China’s economy has yet to filter through to Europe.

Eurozone PMIs leave Euro struggling

EURUSD is giving up some of this month’s gains after Purchasing Managers Index (PMI) data for the Eurozone suggest early signs that the Chinese economy is steadying have yet to be reflected in Europe.

EURUSD Price Chart, Hourly Timeframe (April 1 - 18, 2019)

Latest EURUSD price chart.

Chart by IG (You can click on it for a larger image)

The PMIs imply that growth in Germany, France and the Eurozone as a whole remains tepid, with the table below showing the latest data and the comparable figures for a month earlier.

Latest Eurozone PMI data.

Thursday’s PMIs also showed little growth elsewhere, with only a marginal increase in business activity in Australia, and the Japan manufacturing PMI below the 50 mark separating expansion from contraction for the third straight month.

Hopes are low too for the US PMIs due later in the session, with economists expecting a small pickup in the US manufacturing PMI in April offset by a decline in the US services sector.

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--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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