BREAKING: EURUSD drops in spite of solid PMIs

Release of preliminary PMIs for April is a key event during today's European morning. Market expected a slight deterioration in both manufacturing and services sectors. However, French data released at 8:15 am BST showed PMIs coming not only above expectations but also above last month's levels. German release was not as upbeat as the manufacturing gauge underperformed both against expectations and month-ago value. Nevertheless, strong beat was reported in German services PMI. Release shows what was already known that current supply chain disruptions are affecting manufacturing primarily and services sector holds firm.

France

• Manufacturing: 55.4 vs 53.1 expected (54.7 previously)

• Services: 58.8 vs 56.5 expected (57.4 previously)

Germany

• Manufacturing: 54.1 vs 54.5 expected (56.9 previously)

• Services: 57.9 vs 55.5 expected (56.1 previously)

In spite of data being better than expected by the market, EURUSD failed to catch a bid. Main currency pair took a hit following the release of French data and release of German data did little to change the situation. Taking a look at EURUSD chart at H1 interval, we can see that the pair dipped below 1.0820 short-term support following the release.

Source: xStation5