Flash PMIs from France and Germany: why the order matters

[FXS London Scalper]

The flash PMI surveys arrive one after another: France around 08:15 London, Germany 15 minutes later, and the eurozone figure at 09:00. The UK follows at 09:30.

What to watch:

• The French release sets the first tone for EURUSD.
• The German release often matters more because of the economy's size.
• Since the two largest economies are already known, the eurozone figure holds fewer surprises, and the reaction to it is usually smaller.
• Manufacturing and services can point in different directions; services is often more important.

A plan for scalpers: avoid trades in the minutes around 08:15 and 08:30, then trade the direction if both country releases agree.

When they disagree, the morning can be choppy, with moves reversed.

Note the timing relative to the London open: these releases come shortly after 08:00, so they can disrupt the opening hour.

Keep a note of the previous month's figures, since the change matters as much as the level for how the market reacts.

Do you trade PMI mornings?