Euro area manufacturing PMI index likely to have dropped slightly in August

The July Markit manufacturing PMI index contributed to the view that the German and the euro area economies were decelerating. The PMI index hit a high of 59.6 for Germany and 57.4 for the euro area in June. But both indices dropped marginally to 58.1 in Germany and to 56.6 in euro area in July. Therefore, the release of the preliminary August market manufacturing PMI has the potential to move the market as a further drop in the index would aid in strengthening the slowing-down view while a rebound would tend to affirm what other data on the region have been indicating, stated Wells Fargo in a research report.

Meanwhile, markets would also have a chance to appear at the service side of the economy, both in Germany and the euro area. This index hit a series high in April for the euro area while it has been trending down since June for Germany, noted Wells Fargo. According to a Wells Fargo research report, the euro area manufacturing PMI is expected to have dropped marginally to 56.3 in August.

At 22:00 GMT the FxWirePro's Hourly Strength Index of Euro was neutral at -3.205, while the FxWirePro's Hourly Strength Index of US Dollar was bearish at -81.176. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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