EUR/USD rises ahead of PMI data. The economists of Commerzbank They analyze the pair's prospects.
Different outlook for EUR/USD today?
In the Eurozone, our economists expect the services PMI to be slightly above the Bloomberg consensus. We also expect the manufacturing sector index to be above consensus. At the moment, this argues for a stronger Euro against the Dollar than we have seen recently.
In addition, slightly weaker figures are expected in the United States. That country's PMIs would still clearly be in expansionary territory, but the slight upward trend would also stop for the moment. Additionally, initial jobless claims are expected to increase slightly. This certainly wouldn't spell the end of the great US growth story, but after all the recent positive surprises, it could also be a sign that things aren't going to get better forever.
Of course, it must be said that PMIs in particular often have to be considered with a high degree of uncertainty. There are often significant surprises, which ultimately determine market movements. However, if the figures more or less match expectations and our economists are correct in their assessment, things should not look so bad for the Euro today. Besides, If US data casts even the slightest doubt on the current strong growth story, EUR/USD could rise further today.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
