A new trading week begins today, and these are the most important economic events in the market, on a day with a light economic calendar.
Nikkei Japan PMI (July)
Time: 00:30 GMT
This economic reading shows the general health of the manufacturing sector, and any reading above the 50.0 level reflects expansion in the sector and better economic conditions. Higher than expected readings are positive news for the Japanese Yen and the Japanese economy, indicating a strong manufacturing sector.
Markit Germany Services PMI and Manufacturing PMI (July)
Time: 07:30 GMT
The German Services Purchasing Managers Index (PMI) and the German Manufacturing Purchasing Managers Index (PMI) readings for the month of July will show the activity level and if there are better business conditions for the services and the manufacturing sector. The expectation for the Manufacturing PMI is a reading of 59.2, lower than the previous reading of 59.6, while the expectation for the Services PMI is a reading of 54.3, higher than the previous reading of 54.0. Higher readings are positive for the German economy signaling further expansion and economic growth and are supportive for the Euro.
Eurozone Manufacturing PMI and Services PMI (July)
Time: 08:00 GMT
As for the German Services PMI and Manufacturing PMI, the equivalent economic readings for the Eurozone will show the economic performance and business conditions for the Eurozone. Higher readings than the level of 50.0 show economic expansion. The expectations are for the Eurozone Services PMI to have a reading of 55.4, exactly as the forecast, and the Manufacturing PMI to have a reading of 57.2, a bit lower than the previous reading of 57.4. Higher than expected readings are supportive for the Euro, and the higher the surprises, either positive or negative, the higher is the possibility for a new trend to begin in the EUR/USD.
US Markit Manufacturing PMI and Services PMI (July)
Time: 13:45 GMT
Later on today after the German and the Eurozone PMIs, there will the releases of the US PMIs, again showing the business conditions for the US Services and Manufacturing sectors. The expectations are for the Manufacturing PMI reading to be 52.2, a bit higher than the previous reading of 52.0, and the expectation for the Services PMI reading to be 54.0, a bit lower than the previous reading of 54.2. Any higher than expected or rising readings are supportive for the US Dollar.
US Existing Home Sales (June)
Time: 14:00 GMT
This economic reading measures the number of existing home sales, and the expectation is for a reading of 5.57 million, lower than the previous reading of 5.62 million. Existing home sales reflect the current housing market conditions, and higher readings are positive for the US Dollar and the US economy showing a strong demand for the housing market and higher consumer spending, but can show also increased inflationary pressures.
