French PMIs disappoint – EUR/USD slides

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Markit reported its preliminary purchasing managers’ indices for France, Europe’s second largest economy. Manufacturing PMI fell 47.1 points, while in the services sector, the indicator fell to 47.4. Manufacturing PMI was expected to advance from 48.4 to 49.1 points. Services PMI carried expectations of a move from 48 to 48.9 points. The 50 point mark separates contraction from growth.

EUR/USD traded just above 1.3750 before the publication, after steady trading in the Asian session. The pair made a quick drop to 1.3735 before bouncing back.

The release for France will be followed by the German numbers and later by the all-European numbers. There are market moving German surveys this week, but the Fed will probably steal the show with the decision on whether or not to taper.

Support is at 1.3710 and resistance awaits at 1.38. For more on the euro, see the EURUSD forecast.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.