Eurozone PMIs Preview: First crucial view of how Europe is coping with coronavirus
Markit's preliminary PMIs for March provide the first crucial view of how Europe is coping with coronavirus and its implications. Scores above 40 could help the euro bounce while levels under 35 could be devastating, in the opinion of FXStreet’s analyst Yohay Elam.
“Economists expect dire results, between 37.8 to 42.5 points for French, German, and eurozone PMIs in the manufacturing and services sectors – representing severe contraction.”
“Above 40: If scores on French and then German PMIs hold above the round number, EUR/USD has room to rise. It would help the euro better weather the next storms.”
“Between 35 and 40: EUR/USD would likely trade choppily, reacting to all figures but eventually maintaining its course.”
“Below 35: Scores under 35 would already be reminiscent of 2008 and weigh on the euro, while any number below 30 could trigger a massive sell-off. EUR/USD could tumble down in this case.”