The preliminary February PMI surveys are set to gain more market attention as real economy performance will determine the outlook for the Fed but and for the ECB, economists at Commerbank report.
Sideways move in EUR/USD for now
“As Fed and ECB monetary policy are in lockstep a lot is pointing towards a sideways move in EUR/USD for now.”
“Which currency will have a better run medium-term will depend heavily on which central bank will sustain the ‘higher for longer’ for longer. And that will in part depend on the real economic performance of the two economic areas so that the significance of indicators such as the PMI for exchange rates might increase for now.”
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