EUR/USD: Positive PMI surveys to propel Euro back to the 1.0750-1.0800 range – ING

It’s PMI day, and economists at ING think the Euro could benefit from the reinforcement of its growth story after a period of few domestic drivers.

A reminder of the improved growth outlook

“The Euro has been left without strong domestic drivers on the data front over the past week, so today’s PMIs will be watched quite closely. Consensus is leaning in favour of some modest improvement in both manufacturing and service gauges, and investors might see this as an opportunity to re-enter strategic medium-term long-EUR positions now that the Dollar correction seems to be losing momentum.”

“Instability in global risk appetite today may delay the beneficial effects on EUR/USD today, but we still see the balance of risks tilted to the upside for EUR/USD in the coming days, and a return to the 1.0750-1.0800 range seems possible.”