Busiest day of the week

Early in the European session, we learned the PMIs from France and Germany. French Services PMI was disappointing, while the manufacturing one exceeded expectations – both of them came below 50. In case of data from Germany, they were pleasantly surprising, but not abundantly so, as both still came way below 50.

Soon enough, another PMI’s – this time from the UK – will hit our screens. Both of them (Manufacturing and Services) are expected to be lower than 50 and lower than the readings from the previous month as well. Under such circumstances, an occurrence of better numbers might make for a welcome surprise.

Later on, we will find out the PMIs from the USA in order to finish the day with the FOMC Meeting Minutes.

On the markets, the Wednesday session starts with a full risk ON mode. On the FX, USD and JPY are weakening and emerging markets currencies are on the rise. EURUSD had a strong day yesterday and is also climbing higher today, rising by 0.3% so far.

Indices are starting our Wednesday with a proper rise, attempting to leave the recent flat sideways trend with a move to the upside. Such action may be considered a small surprise as the recent bullish trend is really stretched and a slightly bigger bearish correction would be truly welcome. FOMO seems to have a huge impact here and many traders believe that we have reached the real bottom and they do not want to be left behind. Dow and DAX futures managed to make new monthly highs.

Oil cooled down after the whipsaw movement from two days ago. The reversal from the local lows created a great foundation for a further rise in the mid-term and it seems that buyers are enjoying this ride, so the current sentiment is slightly bullish.