It’s the third week of the month, which means it’s time for another batch of euro zone flash PMIs! What else should you look out for?
ECB monetary policy meeting accounts (Nov. 21, 12:30 pm GMT)
- Kept rates and bond purchases unchanged in their latest decision
- Not expected to be a big mover since it was Draghi’s last policy meeting
- Remarks from the rest of the Governing Council members could still hint at policy direction
- New ECB head Lagarde’s testimony the next day might have a stronger market impact, along with hawkish ECB member Weidmann’s speech
Euro zone flash PMI readings (Nov. 22, 8:15 am GMT)
- Small gains expected across the board, economic activity bottomed out?
- October PMIs picked up slightly, another set of upticks could be positive for euro pairs
- French flash manufacturing PMI to tick higher from 50.7 to 50.9 in Nov.
- French flash services PMI to improve from 52.9 to 53.0
- German flash manufacturing PMI to climb from 42.1 to 42.9, reflecting slower contraction
- German flash services PMI to advance from 51.6 to 52.0, indicating faster expansion
- Euro zone flash manufacturing PMI expected to rise from 45.9 to 46.4
- Euro zone flash services PMI to improve from 52.2 to 52.4
- Still a mixed bag for the euro pairs coming into the week, based on whether or not prices are above or below moving averages
- Looking at stochastic reveals that EUR/USD is looking bullish or oversold while EUR/AUD is approaching overbought conditions
- Among the franc pairs, both AUD/CHF and CAD/CHF are indicating oversold conditions or exhaustion among sellers