Markit reported its preliminary purchasing managers’ indices for France, Europe’s second largest economy. Manufacturing PMI fell 47.1 points, while in the services sector, the indicator fell to 47.4. Manufacturing PMI was expected to advance from 48.4 to 49.1 points. Services PMI carried expectations of a move from 48 to 48.9 points. The 50 point mark separates contraction from growth.
EUR/USD traded just above 1.3750 before the publication, after steady trading in the Asian session. The pair made a quick drop to 1.3735 before bouncing back.
The release for France will be followed by the German numbers and later by the all-European numbers. There are market moving German surveys this week, but the Fed will probably steal the show with the decision on whether or not to taper.
Support is at 1.3710 and resistance awaits at 1.38. For more on the euro, see the EURUSD forecast.
