Impact of French Flash Manufacturing PMI, German Flash Manufacturing PMI, German IFO Business Climate On Euro Currency

This study presents a broad understanding of the Forex market, its participants and the methods used for analysis of the Forex markets. This research focuses on the currency Euro and the major economic indicators of the Euro zone. This research aids in understanding the movement of the Euro to the timely releases of Euro-zone economic indicators. Further this study also helps in determining the movement of the euro in a particular direction in the short term i.e. an hour and the possibility of trading the currency in the aforesaid time frame. Data was analyzed using inferential statistics. Thus findings of this study revealed that the German flash PMI is at the top spot as the most important economic indicator in business survey as it contributes 67 percent of changes in EUR/USD. French flash manufacturing PMI is second most important economic indicator in business survey as it contributes 53 percentof changes in EUR/USD. German IFO business climate constitutes 47 percent of the changes in EUR/USD. It is the third most important economic indicator in business survey due to its large sample size and historic correlation with German and wider Euro zone economic conditions.