The last time around, Germany’s manufacturing sector disappointed in quite remarkable fashion and that led to the euro stumbling and falling thereafter. Will we get more of the same kind of surprise tomorrow? Only time will tell.

Green shoots are appearing in recent Eurozone economic data and that has helped to see the long-term market gauge of Eurozone inflation expectations rise to a three-week high of 1.40% today. While at the same time, the euro has recovered some ground since the end of last week with EUR/USD sticking near 1.1300 this week as resistance around 1.1325-30 still proves to be a tough task for buyers to break above.

However, large expiries at 1.1300 and swing region resistance around 1.1325-30 are likely to keep price action limited on the day. But expect plenty more volatility to come about upon the release of the data tomorrow. Also, do take note that most markets are closed on Friday in observance of Good Friday so expect some position squaring ahead of the weekend to be done tomorrow too.

For some context, the German government already slashed its forecast in January from 1.8% to 1.0% before the revision here.