EUR/USD, GBP/USD, DXY Forecast: DXY at $105.800, PMI Figures in Focus

Additionally, the UK’s Public Sector Net Borrowing came in at £14.1B, slightly better than the expected £14.5B. These figures helped provide some support for the pound.

Meanwhile, in the Eurozone, several PMI reports were released. Germany’s Flash Manufacturing PMI fell to 43.4 from a previous 45.4, missing expectations of 46.4. Similarly, the French Flash Manufacturing PMI dropped to 45.3, below the forecast of 46.8.

However, Germany’s Flash Services PMI improved slightly to 53.5, from a previous 54.2, while the French Flash Services PMI slipped to 48.8. These mixed results have led to a cautious sentiment around the EUR/USD.

Events Ahead

Looking ahead, several critical economic indicators are expected to influence the markets. At 8:30, the UK’s Flash Manufacturing PMI and Flash Services PMI are anticipated, with forecasts at 51.3 and 53.0, respectively. These numbers will be closely watched to gauge the health of the UK economy.

Later in the day, the Eurozone will see the ECOFIN Meetings, potentially impacting the EUR/USD depending on the outcomes discussed. In the US, the Dollar Index will be influenced by the Flash Manufacturing PMI and Flash Services PMI, with expected values of 51.0 and 53.4, respectively.

Existing Home Sales and the CB Leading Index at 14:00 will further provide insights into the US economic landscape. With these upcoming data releases, traders should be prepared for potential volatility.