(MENAFN– ecpulse) The economic clock is expected tick louder on Wednesday, with the Eurozone manufacturing and services Purchasing Managers` Indexes (PMI) data due to be released. The euro-area PMIs are forecasted to show negative feed about the bloc’s activities.
The euro area’s economy, which grew 0.2 percent in the fourth quarter, will welcome the latest piece of updates that will most likely show signs of stabilization in the 18-nation economy. Higher than the third quarter’s 0.1 percent increase.
What is expected for the upcoming release?
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Traders will closely weigh the PMI update, as the market looks for more confirmation that Europe’s recovery has began. The trend on Eurozone PMIs is pointing up, though still modestly.
A strengthening upturn in the manufacturing and services sector is helping the euro-area recovery become firmly established.
- France PMI Manufacturing probably fell to 51.9 vs. 52.1
- France PMI Services expected at 51.3 from 51.5
- Germany PMI Manufacturing forecasted at 53.8 from 51.5
- Germany PMI Services likely rose to 53.3 from 53.0
- Eurozone PMI Manufacturing likely unrevised at 53.0
- Eurozone PMI Services probably rose to 52.5 vs. 52.2
- Eurozone PMI Composite estimated lower at 53.0 from 53.1
The Eurozone`s troubled manufacturers grew strongly in the first three months of 2014, raising hopes of a robust recovery in the single-currency bloc. Figures for the manufacturing sector showed the strongest quarterly growth since the first half of 2011 as France, Spain and Italy rebounded.
How could the euro react?
The euro has been surprisingly strong these days despite seeing bleak euro zone economic figures and hearing of potential easing from the ECB.
Positive industry expansion across both manufacturing and services sectors in euro-area and Germany in particular could reduce easing expectations, which might then give the euro a strong boost.
As of 09:11 GMT+3, the EURUSD pair was trading at $1.358322 after opening at $1.358153. The pair so far hit a session high $1.38357 after falling to a session low of $1.38136.
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