German PMIs did not come out as expected, but each sector took a different direction. EUR/USD preferred the empty half of the glass.
EUR USD Down on Weaker German Manufacturing
The services sector surprised to the upside with a leap from 49.7 to 52.1 points, much better than a small rise to 50 that was expected. The services sector returned to growth.
However, the manufacturing sector surprised to the downside, sliding from 46.8 to 46.3, falling short of a rise to 47.1 that was predicted. This points to a worse contraction. 50 points separate between growth and contraction.
EUR/USD dropped from 1.3110 to 1.2175 before stabilizing. 1.3075 serves as minor support, with 1.3030 following up before 1.30. On the topside, 1.3140 is a limit before the almighty 1.3170.
For more, see the euro to usd forecast.
Other PMIs came out more or less as expected: French manufacturing PMI edged up from 44.5 to 44.6 points, slightly weaker than 44.9 that was expected, and generally weak. France’s services sector advanced from 45.8 to 46 points, a bit better than the same result.
The Manufacturing  PMI for the whole euro-zone came rose from 46.2 to 46.3 points, while services exceeded expectations and jumped from 46.7 to 47.8, much better than 47 that was expected – thanks to German strength in services.
Further reading:
- EUR/USD Advances to Resistance Trend Line
- Why is the EUR at these levels?
These are Flash purchasing managers’ indices for December. A revision will come afterwards. PMIs are important because they are forward looking indicators.
