What can we expect from the next S&P Global PMI report?<\/p>\n
While PMI surveys are forecast to reaffirm healthy business conditions in the private sector, details surrounding input costs could ramp up market volatility. Although the softer-than-expected June inflation data from the US eased bets for a Federal Reserve<\/a> (Fed) interest rate hike in July, the recent increase in Oil prices caused investors to refrain from pricing in a prolonged policy hold.<\/p>\n With the US and Iran ramping up military aggression in the Middle East, the barrel of West Texas Intermediate (WTI) is up nearly 30% in July. In the meantime, the CME FedWatch Tool shows that markets are pricing in a nearly 80% probability of an at least 25 basis points (bps) Fed rate hike by September.<\/p>\n Previewing the PMI data, \u201cwe expect both the S&P manufacturing and services PMIs to improve in July. Manufacturing is likely to rebound to 54.5, in line with strong regional surveys in the month (Empire and Philly Fed),\u201d TD Securities analysts said.<\/p>\n \u201cMeanwhile, services is likely to continue improving to 51.5. NY Fed services improved in July, and we expect S&P to begin catching up to ISM,\u201d they added.\u00a0<\/p>\n When will the July flash US S&P Global PMIs be released and how could they affect EUR\/USD?<\/p>\n The S&P Global Manufacturing, Services, and Composite PMIs reports will be released at 13:45 GMT on Friday. As previously noted, they are expected to show that US business activity continued to expand in July.<\/p>\n In case the publication suggests that business owners are facing increasing input costs in July and considering transferring those costs to customers by raising prices, markets could see that as a sign of inflationary pressure resurfacing again. In this scenario, the USD could continue to gather strength heading into the weekend and weigh on EUR\/USD<\/a>.<\/p>\n Conversely, an unexpected drop into the contraction territory below 50, in either the headline Manufacturing or the Services PMI, could hurt the USD with the immediate reaction and help EUR\/USD hold its ground.<\/p>\n Middle East tensions risk being underplayed in early July PMI signals<\/p>\n Analysts at Rabobank caution that the initial July PMI signals may not fully capture the latest geopolitical and commodity-market developments. They argue that \u201cthis preliminary reading may understate the impact of the escalation in the Middle East,\u201d noting that \u201cthe July poll was probably conducted in the past two weeks, so the results may be skewed if many respondents replied early \u2013 and therefore could not fully factor in the current situation in the Middle East, or this week\u2019s increase in oil prices.\u201d<\/p>\n Eren Sengezer, European Session Lead Analyst, shares a brief technical outlook<\/a> for EUR\/USD:<\/p>\n \u201cEUR\/USD trades below the 20-day Simple Moving Average (SMA) following multiple failed attempts to clear that level earlier in the week. Additionally, the Relative Strength Index (RSI) indicator on the daily chart stays near 40, reaffirming the bearish stance.\u201d<\/p>\n \u201cOn the downside, 1.1370-1.1350 (Bollinger Band lower arm, static level) aligns as the first support area ahead of 1.1270 (static level) and 1.1160 (static level). Looking north, the immediate resistance level could be spotted at 1.1420 (20-day SMA), followed by 1.1470 (Bollinger Band upper arm) and 1.1570 (100-day SMA).\u201d<\/p>\n S&P Global Manufacturing PMI<\/p>\n The S&P Global<\/a> Manufacturing Purchasing Managers Index (PMI), released on a monthly basis, is a leading indicator gauging business activity in the US manufacturing sector. The data is derived from surveys of senior executives at private-sector companies from the manufacturing sector. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), industrial production, employment and inflation. A reading above 50 indicates that the manufacturing economy is generally expanding, a bullish sign for the US Dollar (USD). Meanwhile, a reading below 50 signals that activity in the manufacturing sector is generally declining, which is seen as bearish for USD.<\/p>\n![\"Source:](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/07\/image-1784883362687.png\")
Source: CME Group<\/p>\n![\"EUR\/USD](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/07\/image-1784883473948.png\")
EUR\/USD daily chart
\n Economic Indicator<\/p>\n