The stellar German PMI report won't do much to change market sentiment
EUR/USD got a light jump from the strong report earlier, moving up from 1.1820 to 1.1833 but that is quickly fading as the report will not do much to change things on the day.
Sure, Germany is performing better than expected in light of lockdown measures and that is some positive news considering that it is Europe's biggest economy.
But if you strip that out, the rest of the region is still not showing much improvement this year. Adding to that is still much pessimism surrounding the virus situation and vaccine rollout as we now start to enter into Q2 next week.
The market is erring more towards being risk averse and with dollar flows being as persistent and strong as ever so far this year, it will take more than just good economic data (not PMIs at least) to turn the tide in the market for the time being.
Going back to EUR/USD, the technicals tell more of the story of what is going on.
