Hot Topics:
- Markit PMI release: Eurozone growth stays lower, and the US rises solidly.
- Main European indexes closed with gains.
Markit PMI release: Eurozone growth stays lower, and the US rises solidly.
After the publication of Markit PMI data from both the Eurozone and the United States, we see two opposite sides of economic dynamism. On the one hand, the Eurozone economy remained unchanged in April compared to March, maintaining the sector index of 55.2; manifesting a sense of stagnation in economic growth. Chris Williamson, Chief Business Economist at IHS Markit, said: “The decline in January’s high is neither surprising nor alarming.”
On the other hand, in the United States, the private sector is showing signs of robust growth in both the Manufacturing industry and the Services sector. The Manufacturing PMI Index grew to 56.5 in April, the highest level in 43 months, above the 55.6 reported in March. Likewise, the service sector reported an increase in activity that reached 54.4 in April, compared to the 54 published in March, the highest level reached in two months.
The Euro has broken below the triangle pattern that was respected until last week. Currently, the pair is testing support at the psychological level of 1.22. We keep our bearish vision with the target between the 1,215 and 1,207 area.
The pound for its part, after having broken below 1.40, we expect a bearish continuation to the levels of 1.379.
The CHF, which is correlated inversely with the common currency, gives us signs of bullish continuity, being able to bring the price up to 0.9836 before making a corrective move.
Main European indexes closed with gains.
The FTSE 100 continues to advance in a rising wedge pattern towards the blue box area between the levels of 7,456.3 to 7,523. From this zone, it should react to form a potential new bearish leg.
The DAX 30 is again looking to overcome the 12,622 pivot level. If it does overcome it, the movement could reach over 13,000 pts.
©Forex.Academy
