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Exam Number : PMBOK-5th
Exam Name : Project Management 5th Edition
Vendor Name : PMI
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August PMIs Fall More Than Expected: Manufacturing Contracts, Services Ebb, Raising Economic Concerns

No result found, try new keyword!The S&P Global US Manufacturing PMI fell from 49 in July to 47 in August, well below market expectations of 49.3. This marks the second-largest monthly decline in 2023. Reduced new sales prompted ...

EUR/USD Forecast: Sellers look to retain control following dismal PMI data

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  • EUR/USD dropped to its lowest level since mid-June on Wednesday.
  • Disappointing PMI data from Germany and the EU weigh heavily on the Euro.
  • S&P Global will release Manufacturing and Services PMI data for the US later in the day.
  • Following a modest recovery attempt in the early European session on Wednesday, EUR/USD came under renewed bearish pressure and dropped to its weakest level since June 15 near 1.0800. 

    HCOB Services PMI in Germany dropped below 50 for the first time since this year in August, showing a contraction in the services sector's business activity. Although HCOB Manufacturing PMI edged slightly higher to 39.1 from 38.8 in July, it failed to help the Euro shake off the selling pressure. 

    Commenting on the survey's findings, "any hope that the service sector might rescue the German economy has evaporated," noted Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank.

    "Instead, the service sector is about to join the recession in manufacturing, which looks to have started in the second quarter,"  he added and said that their GDP nowcast model now indicates a deeper fall of the whole economy than it did before, at almost -1%. 

    In the meantime, HCOB Services PMI for the Eurozone fell to 48.3 from 50.9 in the same period.

    Euro price today

    The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the weakest against the Japanese Yen.

      USD EUR GBP CAD AUD JPY NZD CHF USD   0.19% 0.06% 0.03% 0.01% -0.19% 0.02% -0.03% EUR -0.19%   -0.10% -0.16% -0.18% -0.39% -0.18% -0.23% GBP -0.09% 0.10%   -0.07% -0.08% -0.30% -0.05% -0.10% CAD -0.04% 0.15% 0.06%   -0.02% -0.23% -0.02% -0.08% AUD -0.04% 0.19% 0.06% 0.03%   -0.20% 0.01% -0.04% JPY 0.20% 0.38% 0.25% 0.23% 0.23%   0.21% 0.15% NZD -0.02% 0.18% 0.08% 0.01% 0.00% -0.20%   -0.06% CHF 0.04% 0.24% 0.13% 0.07% 0.05% -0.16% 0.06%  

    The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).

    Later in the day, S&P Global will publish preliminary August Manufacturing and Services PMI data for the US. In case the Services PMI unexpectedly drops below 50, the US Dollar could weaken against its rivals and help EUR/USD limit its losses. 

    It's worth noting that US stock index futures trade in positive territory in the European session. A positive opening in Wall Street could make it difficult for the USD to gather further strength even if PMI figures highlight the resilience of the US private sector.

    EUR/USD Technical Analysis

    EUR/USD returned within the descending regression channel and the Relative Strength Index (RSI) dropped below 40, reflecting a buildup of bearish momentum. 

    On the downside, 1.0800 (psychological level, static level, lower limit of the descending channel) aligns as immediate support. In case the RSI falls below 30 when EUR/USD drops to that level, investors could book their profits and wait for a technical correction before betting on further Euro weakness. Below 1.0800, 1.0760 (static level) and 1.0740 (static level) could be seen as next bearish targets in the near term.

    EUR/USD faces first resistance at 1.0840 (mid-point of the descending channel) before 1.0870 (20-period Simple Moving Average (SMA), upper limit of the descending channel) and 1.0900 (psychological level, 50-period SMA).

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