Flash Purchasing Managers' Indexes (PMIs) start coming out tomorrow. A disappointing figure from Germany could drag the EUR/USD pair sustainably under parity, Kit Juckes, Chief Global FX Strategist at Société Générale, reports.

The Damoclean sword hanging over the European economy is not going away

“In Europe, national surveys have been stronger than the PMI data, which may give some hope for a stronger figure, but in Germany, gas prices, the water level in the Rhine and inflation are having a devastating impact on business confidence.” 

“A very bad German PMI might be enough to cement EUR/USD under parity, even if other countries fare patter.”