Purchasing managers’ indices are released on Tuesday (PMI) of various European countries and the eurozone as a whole. If the data is located below 50 expansion signalwould another reason to take the EUR/USD pair below parityreport economists from Commerzbank.
Things could start to get tough for the euro now
“If PMIs reinforce recession fears by falling again, with the eurozone services index even below the 50 expansion mark, things could start to get tough for the euro. market expectations that the ECB could pause its rate-hike cycle (too) soon despite inflation levels remaining high Already seen as being (too) cautious in its fight against inflation “.
“All of these arguments coupled with dollar strength, point to EUR/USD settling below parity for now.”
Source: Fx Street
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