Global macro overview for 02/07/2018

The June result of the German PMI Manufacturing index is the lowest since the end of 2016, according to Markit IHS. The index value of 55.9 points has not changed since the previous month and was in line with economists' expectations, in the first minutes after the data the DAX index grouping the largest companies is growing.

New orders in the industry show the slowest growth in two years and optimism among German entrepreneurs has fallen to the lowest levels in three years, producers of goods are looking at the upcoming year unconvincingly. The only positive aspect that flows from the Markit report is the pace of creating new jobs that have risen to four-month highs.

The PMI Manufacturing index is a gauge for the overall performance of the German manufacturing sector. Through asking executives about sales and employment outlook, the survey strives to provide useful information about the business climate that can lead to developments in employment, output, and consumption. The PMI survey results are the result of interviews with business executives. Manufacturing is an important sector in Germany, which is why changes in Manufacturing PMI can provide a good indicator of the overall economic condition in Germany as well as Eurozone.

Let's now take a look at the German DAX index technical picture at the H4 time frame. The market had opened with a gap down on Monday and fell to the level of support at 12,155. Currently, the bulls are trying to fill the gap and rally towards the level of 12,300, just above the old 61% Fibo retracement level was. If the bears will again take control over the market, then the next technical support is seen at the level of 12,000 (round number) and 11,958 ( April support). Please notice the big gap between the levels of 11,958 - 12,120 that might be filled soon as well.

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