The Eurozone continues to show signs of recovery after the preliminary PMI data was released

May 21, 2021 17:00

While the PMI data for April was not entirely positive, the preliminary data for the month of May resumes the path that we observed during the months of January, February and March, in which they exceeded market expectations. This positive data has highlighted the general improvement in the European economy.

At the beginning of today's session, we found out the preliminary PMI data for the manufacturing and services sector for France, Germany, the United Kingdom and for the euro area as a whole. With the exception of the German manufacturing PMI, the preliminary data for both the Manufacturing PMIs as well as services sector PMIs have exceeded market consensus expectations.

This positive data supports the uptrend of the EURUSD, since as we mentioned in our analysis of the forex market a few days ago, the break of the medium-term downtrend line is causing a new upward momentum after last week’s price, which would pull it back to its 18-session black average, while the price would rebound strongly, closing above this trend line and the 61.8% fibonacci level. 

This break may cause an upward momentum that takes the price to levels not seen since the beginning of the year, as the price is currently fighting to overcome its next resistance level. On the contrary, the loss of the 18 session average would jeopardise the continuation of the bullish momentum.

Source: EURUSD daily chart from Admiral Markets MetaTrader 5 platform from February 12, 2020 to May 21, 2021. Taken on May 21 at 11:30 CEST. Note: Past performance is not a reliable indicator of future results, or future performance.

Price evolution of the last 5 years: 

  • 2020 = + 8.93%
  • 2019 = -2.21%
  • 2018 = -4.47%
  • 2017 = + 14.09%
  • 2016 = -3.21%

How is this data interpreted?

We must remember that the manufacturing PMI is an indicator designed to provide information on the economic activity of the manufacturing sector, where a result above 50 indicates an expansion and growth of this industry. 

For its part, the PMI for the services sector measures economic activity through purchases made in this sector. As in the manufacturing PMI, a reading above 50 is considered positive suggesting good future prospects, while a reading below 50 is considered negative.

A better than expected result should be considered as positive for said economy, strengthening its currency.

With Premium Analytics, you can follow all the important news and get the latest macroeconomic data through the news and the economic calendar offered by Dow Jones:

With the Admirals Trade.MT5 account, you can trade Contracts for Differences (CFDs) of EURUSD and more than 3000 stocks! CFDs allow traders to try to profit from the bull and bear markets, as well as the use of leverage. Click on the following banner to open an account today:


The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”) Before making any investment decisions please pay close attention to the following:

  • This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
  • Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
  • With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
  • The Analysis is prepared by an independent analyst, Roberto Rojas (analyst), (hereinafter “Author”) based on their personal estimations.
  • Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
  • Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
  • Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.
Admirals An all-in-one solution for spending, investing, and managing your money

More than a broker, Admirals is a financial hub, offering a wide range of financial products and services. We make it possible to approach personal finance through an all-in-one solution for investing, spending, and managing money.