There were few important releases earlier during the yesterday’s European session, including the Euro zone, German and French manufacturing and services PMI’s. The outcome was mostly positive, as preliminary April PMI’s for the Euro zone were a touch stronger than the market was expecting. The only disappointment part was that the French manufacturing and services PMI missed the forecasts. However, they were still in the positive territory. This improved the market sentiment for the Euro, as the EURUSD climbed higher after the data release during the London session.
French Manufacturing and Services PMI’s
The very first PMI’s released were for the France. The forecast was slated for a minor decline in manufacturing PMI from 52.1 to 51.9, and from 51.5 to 51.4 in services PMI. The outcome was slightly disappointing, as the French manufacturing PMI dived to 50.9 and services PMI registered a decline to 50.3. The official report by Markit Economics suggested that French private sector output rose for a second consecutive month in April, although the rate of expansion eased to a marginal pace. So, although there was a minor decline, the growth was still visible.
German Manufacturing and Services PMI’s
The second release was for German Manufacturing and Services PMI’s. The forecast was slated for a small rise in manufacturing PMI from 53.7 to 54.0, and from 53.0 to 53.4 in services PMI. The outcome was better than the forecasts, as the German manufacturing PMI climbed to 54.2 and services PMI registered a rise to 55.0. The official report by Markit Economics suggested that the German private sector companies reported solid activity growth at the start of the second quarter, and the latest reading was the second-highest in nearly three years and stretched the current period of growth to 12 months.
Euro Zone Manufacturing and Services PMI’s
The third release was for the Euro zone Manufacturing and Services PMI’s. The forecast was slated for a flat reading in manufacturing PMI from 53.0 to 53.0, and a small rise from 52.2 to 52.4 in services PMI. The outcome was better than the forecasts, as the Euro zone manufacturing PMI climbed to 53.3 and services PMI registered a rise to 53.1. The official report by Markit Economics suggested that the growth of business activity in the euro area economy accelerated to its fastest for just under three years in April, leading to a return to job creation across the region. The highlight of the report was that this is the 10th consecutive reading above the 50 level, which is a great signal towards the growth.
Euro Zone Composite PMI
The last release was for the Euro zone composite PMI. The forecast was slated for a flat reading in PMI from 53.1 to 53.1. The outcome was better than the forecasts, as the Euro zone composite PMI climbed to 54.0. The upturn was again led by goods producers, though also continued to be supported by rising activity in the services economy, according to the report.
Overall, the outcome might encourage the Euro bulls, as the ECB might see this as a positive sign, and stay away from any additional measures in the short term. Technically, EURUSD pushed higher towards the 1.3860 resistance level after the release, but failed to overtake the same. EURUSD breached an important down-move trend line to trade higher. The pair later dived back close to 1.3820 level during the late NY session. The 1.3860 holds the key for more upside in the pair, as more strength might take the pair towards the 1.3900 figure. On the downside, 1.3780 is seen as a major support level, followed by the 1.3750 level.
So, keep an eye on all the important levels friends and trade accordingly.
Get my Daily Market forecast with trade opportunities HERE: Vladimir’s Markets Forecast
Happy Trading Friends!
