Another batch of PMI readings are up for release from the euro zone this week while the franc has a few medium-tier reports to contend with.
Euro zone PMI readings (Dec. 16, starting 9:15 am GMT)
- French flash services PMI to dip from 52.2 to 52.1 to signal slower expansion
- French flash manufacturing PMI to fall from 51.7 to 51.5 in Dec
- German flash manufacturing PMI to climb from 44.1 to 44.6
- German flash services PMI to improve from 51.7
- Euro zone flash services PMI to tick higher from 51.9 to 52.0
- Euro zone flash manufacturing PMI to advance from 46.9 to 47.3
Overall market sentiment
- EUR and CHF typically take advantage of risk-off anti-dollar moves
- Last week’s set of top-tier catalysts turned out in favor of stronger risk appetite, which could be bearish for these lower-yielding currencies
- Moving averages are painting a mixed picture of euro pairs these days, with more pairs in bearish territory and EUR/JPY being the most bullish of the bunch.
- Stochastic, however, is reflecting overbought conditions for EUR/JPY. Meanwhile, EUR/NZD is in oversold territory.
- Franc pairs are also looking mixed, and stochastic is indicating that CHF/JPY is already overbought.
Missed last week’s price action? Check out the EUR & CHF Weekly Review for Dec. 9 – 13!