German manufacturing PMI rose to 52.4 points in March, better than expected. The services PMI also came a bit above expectations and scored 55.3 points.
EUR/USD is topping 1.0980. Can it reconquer 1.10?
The flash German manufacturing PMI for March was expected to tick up to 51.5 points from 51.1 for February. The services sector PMI carried expectations for a rise to 55 points from 54.7 beforehand.
EUR/USD was moving up in range towards the release, edging towards the very round 1.10 level and trading at 1.0970.
Earlier, the numbers for France were slightly short of predictions: manufacturing PMI disappointed by rising to only 48.2 points, below 50 that separates growth and contraction. The services sector saw a bigger drop than expected: from 53.4 to 52.8 points.
Purchasing managers indicators (PMIs) are considered forward looking indicators that foresee future growth. We later have the full euro-zone numbers, but they are outshined by the French and German figures. These are the zone’s largest countries.
EUR/USD enjoyed a few strong days, mostly riding on the weakness of the dollar. However, some think this is only a correction and suggest selling euro/dollar.
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Here is how the move looks on the chart:
