EUR/USD advances with encouraging PMIs

EUR/USD has advanced in response to encouraging headlines, but there is more than meets the eye. Coronavirus news and reactions to PMIs are set to dominate trading, according to Yohay Elam from FXStreet.

Key quotes

“Markit's preliminary read for February has shown that the German Manufacturing Purchasing Managers' Index scored 47.8, far above 44.8, that was expected and 45.3 recorded in January.”

“Investors are becoming more worried about the spread of respiratory disease in South Korea, which has designated two cities as ‘special care zones.’ Seoul reported 204 cases, including in a military base.”

“Further headlines are set to move markets. In previous Fridays, the mood tended to worsen as the end of the trading week drew closer.”

“Markit's preliminary PMIs for the US are due out in the American session and could move markets. It is essential to note that in America, ISM's surveys carry more weight than Markits'.”