PMI Trends: US Dollar Resilience Amid Euro and UK Setbacks

Dollar Index Stability Ahead of PMI Insights

The U.S. Dollar Index remains stable as markets await crucial PMI data. Flash Manufacturing PMI is expected at 47.9, while Flash Services PMI is forecasted to come in at 55.7. Traders are also eyeing speeches from FOMC members Goolsbee and Kashkari later in the day, which could provide further insights into the Federal Reserve’s policy direction. Any significant deviation from the expected PMI figures could trigger volatility in the dollar.

Dollar Index (DXY) Technical Analysis

The Dollar Index (DXY) hovers around $100.772, showing no significant movement. The chart is at a critical pivot point of $100.934, and the next moves could provide clues on where it’s headed. Immediate resistance is found at $101.201, with higher targets at $101.471 and $101.821. On the downside, support is seen at $100.527, with further levels at $100.227 and $99.943, offering a potential safety net.

UK and Eurozone PMI Data Impacts Currency Stability

The British pound held steady despite weaker-than-expected PMI data. The UK’s Flash Manufacturing PMI came in at 51.5, missing the forecast of 52.3, while the Services PMI dropped to 52.8, slightly below the anticipated 53.5. While the figures indicate a minor slowdown, they remain in expansion territory, offering some support to the GBP.

GBP/USD Technical Forecast

The GBP/USD pair is currently trading at $1.32655 within an upward price channel. The immediate support level sits at $1.32186, while further downside support levels are $1.31672 and $1.31107. On the upside, resistance stands at $1.33391, with further targets at $1.33799.

Eurozone Weak PMI Data Hurts Euro

The Euro faced downward pressure as French and German Flash PMI figures came in below expectations. French Manufacturing PMI fell to 44.0, while German Manufacturing PMI disappointed at 40.3. The broader Eurozone Manufacturing PMI posted 44.8, below forecast. These weak numbers heighten concerns over a potential economic slowdown.

EUR/USD Technical Forecast

The EUR/USD shows short-term bearish momentum, with the price near $1.10842. Immediate support lies at $1.10683, while resistance stands at $1.11902, marking pivotal levels for traders to watch.