The main numbers out today for the euro to dollar currency pair are the Final Manufacturing PMI figures due for release at 9.00 in Europe, followed this afternoon by the ISM Manufacturing (PMI) in the US.  The European data is based on a survey of purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories, with a number above 50 indicating industry expansion, and a number below 50 indicating contraction. The figures for last time were 38.0 with a forecast of the same, this time around. In general if the forecast is exceeded this is generally good for the home currency. This is an important indicator as it is considered a leading indicator of the economic health of the country and also business sentiment, with companies reacting quickly to market conditions and the data therefore provides an insight into the “true” market conditions.

The data released in the afternoon, is very similar to that in Europe. In this case it is a survey of about 400 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories. Again it is a leading indicator, and with a figure above 50 showing an industry in expansion, and below 50, one in contraction. Of the two sets of data, the US figures will have more of an effect on the euro to dollar pair today. Again, if the forecast is exceeded by the actual, then this is generally considered good news for the home currency.