Global macro overview for 24/01/2017:
The series of PMI Flash indicators from the Eurozone was released this morning. Those data offers a fresh outlook for the Eurozone economy. On the whole, market analysts were optymistic, that the firmer trend in GDP growth will continue. This is why the PMI Flash Composite index was expected at the level of 54.5, a 0.1 point higher than a month ago. Nevertheless, the figure released was at the level of 54.3, 0.1 points less than anticipated. The same situation can be observed at Flash Services PMI that was worse than expected reading of 53.9 points by a mere 0.1 points as well. The only PMI sub-index that beat market expectations was PMI Flash Manufacturing index with 55.1 points delivered versus 54.8 points expected and 54.9 points a month ago. The biggest responsibility for worse than expected figures goes to Germany this time as both Services and Composite Flash PMI's dissapointed market participants. In conclusion, the PMI Flash data did not deliver the upbeat figures. Nevertheless, the first estimate of the official Q4 GDP scheduled for next week might surprise analysts to the upside.
Let's now take a look at EUR/USD technical picture in the 4H time frame. The overlapped price action suggests a corrective upward cycle in progress, so the downtrend should resume any time. The first sign of the resumption might come with the golden trend line breakout around the level of 1.0650, so please keep an eye at the level.
