Danske Bank comments on the round of PMIs due from Europe on Thursday 18 April 2019
- For EUR/USD, the big test
- April’s flash PMIs
- We look for another disappointment tomorrow, which could send EUR/USD down some 50-70 pips on the day
Today will be quite a busy day, moreover considering that most markets will be closed on Friday and for many, it will be the last trading day of the week.
Not only there’s plenty of data scheduled, but market players will try to leave things ‘in order’ until next week. During European trading hours, the attention will gyrate around the April preliminary Markit PMI for the Union.
Slowing economic growth in the euro area has been the main reason being the lack of upward progress in the common currency. If the numbers confirm the ongoing concerns, the pair could return to its yearly lows.
At US season, the focus will be on US March Retail Sales, expected to have grown by 0.9% vs. the previous monthly decline of 0.2%.
Market is still caped by negative trend line. Immediate resistance 1.1330, If PMI’s report beat market expectoration then EUR/USD will test 1.1320/1.1330, if 1.1330 break and stable next target 1.1350 and finally upwards target 1.1380.
On the other hand, immediate support 1.1280, if PMI’s fail 1.1280 will break. Next target would be 1.12450/50 and final target 1.1200