- EUR/USD fell below 1.08 after hopeful PMI services in the USA.
- Earlier on Monday, PMI preliminary data from Germany, France and the General Euro area are mixed.
- Brace markets for comments from US President Trump as another meeting of the office is convened on Monday.
Tanks and interruptions in EUR/USD below 1.08 after the March preliminary indicator by the United States purchasing manager (PMI) was stronger in the service sector than expected. In general, it is expected that the couple will remain about 1.08 for now after US officials (USA) commented on Monday that the upcoming mutual tariffs would be rather directed by the sector and the country, not just wide, as the US President Donald Trump originally announced.
Meanwhile, on the front of economic data, the preliminary shopping manager index (PMI) is issued until March on Monday. On the Old Continent of PMI S&P Global and Hamburg Commercial Bank (HCOB) were hopeful in France, overcoming estimates and soldiers in both production and service sectors, but still signal cramps. Meanwhile, the results for Germany and the general euro area were mixed. Reading the US PMI was an hopeful surprise for the service sector, while the production sector became cramps.
Daily Digest Market Movers: What about contraction?
- PMI European data has already been issued:
- In the case of France, hopeful numbers with a service component reached 46.6, beating the expected 46.3 and previous readings 45.3. The component of the production sector increased to 48.9, originating from 45.8 in February and defeating the expected 46.2.
- In Germany, the service of the service sector fell to 50.2, there is no estimates of 51.4 and below the previous 51.1. The production component jumped up to 48.3, beating the previous 46.5 and above the consensus 47.7.
- In the overall euro area, PMI services dropped to 50.4 from 50.6 earlier, falling below the expected 51.0. However, the production reading accelerated to 48.7 from 47.6 in February, beating the expected 48.0.
- The national activity indicator in Chicago Fed for February was a surprise of 0.18, beating the previous -0.03, which was changed to even -0.08.
- Preliminary PMI data in March by S&P Global appeared as a mixed surprise. PMI services increased to 54.3, beating the consensus 51.2, derived from 51.0. Production has fallen compared to 49.8, there are 51.9 estimates from 52.7.
- At 19:10 GMT, the Vice President for Supervision of the Federal Reserve Board Michael Barr will speak in a moderated discussion on loans for miniature companies at an event organized in Advance Innovation and Fairness in Small Business Finance, Washington, Washington, DC, DC
- Actions are mixed with European actions flat, while American actions are gathering by more than 1% higher.
- The CME Fedwatch tool designs an 85.1% chance of a federal reserve (FED) for maintaining the interest rate at a May meeting, while there is a little chance to lower interest rates.
- 10-year income in the US trades around 4.32% and is looking for a direction after a steep correction from last week.
Technical analysis: Will it persist?
The EUR/USD pair is stuck to a very tight extent on a weekly chart. The fact that EUR/USD has closed below the 200-week-old movable average (SMA) to 1.0854 last week means that returning to 1.10 is not immediately in the cards. On the other hand, support from the 100-week SMA at 1.0782 and 55-week SMA at 1.0740 reveal that the 1.05 return is also not set for quick materialization.
On the other hand, 1.1000 is a key level to which you should pay attention to. After violating this level, the couple enter the celebrated range 1,1000-1.1500, where they often stay for a long time. First of all, of course, the 200-week SMA at 1.0854 must be recovered.
On the other hand, the support of the 100-week SMA at 1.0782 and 55-week SMA at 1.0740 should be enough to meet with all sales pressure EUR/USD. In the event that it does not persist, 1.0667 and 1.06 are another targets in the minus.
EUR/USD: weekly chart
