It’s the third week of the month, and y’all know what that means… It’s time for a fresh set of PMI readings from the euro zone!
Before all that, there could still be some volatility coming from the ZEW figures and ECB minutes.
ZEW economic sentiment figures (Feb. 16, 10:00 am GMT)
- Euro zone ZEW economic sentiment index to to improve from 58.3 to 59.2
- German ZEW index to dip from 61.8 to 60.0 to reflect weaker optimism
- Better than expected results would signal increased confidence in the region, which could be bullish for the shared currency
ECB monetary policy meeting accounts (Feb. 18, 12:30 pm GMT)
- The central bank decided to keep monetary policy unchanged in their latest rate statement
- The meeting minutes should contain more insights on what policymakers think of the COVID-19 stimulus efforts and whether or no more easing could be needed
- Dovish remarks could bring another round of declines for the euro
Flash PMI readings (Feb. 19, starting 8:15 am GMT)
- French services PMI to dip from 47.3 to 47.0 to indicate a sharper contraction
- French manufacturing PMI to tick higher from 51.6 to 51.7 to signal a slightly faster pace of growth
- German manufacturing PMI to improve from the earlier 57.1 figure?
- German services PMI to dip from 46.7 to 46.5
- Euro zone manufacturing PMI to fall from 54.8 to 54.6 to signal a slower pace of expansion
- Euro zone services PMI to rise from 45.4 to 45.9
- Stochastic paints a mixed picture of euro pairs, placing EUR/JPY in the overbought territory to suggest that a selloff is likely
- EUR/AUD and EUR/GBP might be in for gains based on this oscillator
- As for CHF pairs, trend strength analysis places most in the bullish region, except for USD/CHF
- Still, its bearish trend is weakening and could be due to turn a corner soon
Missed last week’s price action? Make sure you read the EUR & CHF Review for Feb. 8 – 12!