Analysts at Societe Generale predict that a poor Germany’s Preliminary S&P Global Manufacturing is likely to keep the EUR/USD pair pressured below the parity mark, as it would mean that the German economy is on the brink of a recession.

Key quotes

“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 better.”