Optimism in the euro levels off after Germany final manufacturing PMI data for April reaffirms the country’s struggles
After the release of the Spain, Italy and French final readings, EUR/USD climbed from 1.1205 to a high of 1.1219 before those gains leveled off to just under 1.1210 now after Germany’s final reading confirmed that the country’s manufacturing sector is still struggling heavily.
With the backbone of the euro area’s most important economy failing to stand upright, it will continue to prove to be an unwanted headwind for the single currency.
And that is evident with a bit of the tapering of enthusiasm in EUR/USD price action earlier. If the final print for Germany actually showed a notable improvement to the initial estimate, I would’ve expected the euro to keep up with light bids throughout the session.
But instead, here we are. That said, buyers remain in near-term control of EUR/USD still as price holds above the 200-hour MA (blue line) so that is something to take notice of as it could help lend itself to an extension higher later in the day.
For now, it looks like buyers aren’t getting much help from German economic data today as we had disappointing retail sales data followed by a confirmation of subdued manufacturing activity in the country.