This PMI is important to the market as its a forward-looking indicator that helps predict the direction of Europes largest economy! Check out how well EURUSD moved last month, on very small conflicting deviations... See charts here --> https://calendar.galaxysoftwareinc.com/#/calendar;i=26486;t=2021-01-22;r=M1 We must concentrate on the Manufacturing line, as this is the most important part of the German economy! Trade Plan.. German Manufacturing PMI - Primary triggers of 2/3/4 German Composite PMI - must deviate by 1.0+- German Services PMI - must deviate by 1.0+-
traders don't really bother about those pmi data, deviation and those things. When the data was released, Germany dax and bund hardly moved. This immune -to-PMI data is quite common. This PMI is unimportant to the traders even though it's a forward-looking indicator that helps predict the direction of Europes largest economy! Eurusd went up but is probably a trend continuation from yesterday's uptrend.
PMI of the biggest economies is _potentially_ important, most of the time the market will sleep right through it as it's already expected and positioned for already. Nothing wrong about sitting in front of screen around major data releases in case something happens, but it has a quite low hit rate. On the rare chance that something unexpected does happen it can be easier traded if the context is understood, though. More time efficient to have a scanner that filters out events that cause no volatility after the release...
Nothing matters in this time other than fiscal packages and central bank printing. PMI is completely irrelevant right now even the health of the German economy is irrelevant in the context of asset prices. What matters is central bank leveraging/deleveraging and fiscal packages.
Agreed, another way of saying it would be that what is the hot data of the moment fluctuates over time. Another example: Pre-COVID a lot was about Fed rate decisions, then after COVID market mostly snoozes through FOMC because the consensus assumption is Fed will stick to their promise of not raising until 2024.
right. It is important to be around during PMI data release. There were times when the data moved the market massively.
Sometimes they matter a lot, especially if you get a bigger or smaller then expected change. Here's my preferred economic calendar (I like how it distinguishes between higher and lower impact types of news releases, but note that the market doesn't react to speeches generally unless someone says something unsettling): https://www.fxstreet.com/economic-calendar
No, for intraday traders, these routine reports very often have a significant impact in FX. I often see it in real time. Sometimes market reactions to them have caused me memorable anguish. Not too long ago, a big miss in a little watched econ report that almost never has any impact caused prices to move sharply and force me out of my position.
... Then check how subsequent market action played out. Almost no dent caused by your econ release. I agree that in normal times some economic reports are vital. Not now. All a matter of perspective of course. If you consider a 20 or 50 pip move a strong reaction in light of the fact that the dollar and yen sold off more than a thousand pips against some counter ccys then be my guest.