EUR/USD dips to a low of 1.1426 as German PMI prints disappoint
Germany’s release was outright disappointing as the manufacturing print slumped to a 28-month low while services failed to offset the negativity by also slumping as the first batch of Q4 data comes in. Earlier, we saw France’s prints came in mixed but the industrial print also slumped to a 25-month low.
As a result, the euro has been dragged lower on the day with economic rain clouds from the start of the year is seen carrying over into Q4 now. The ECB and German authorities have been brushing off growth concerns as being temporary and that a rebound will eventually come but at this point, it’s looking more hopeful and wishful thinking than realistic.
Although PMI prints are survey data and we’re yet to see hard data come in, sentiment is sentiment and this doesn’t bode well for investor confidence or economic sentiment in the region.
With EUR/USD still weighed down technically (holding below the 100-hour MA) and fundamentally (Italian budget woes), the news here comes at a rather unwelcome time.
Currently, the pair remains supported from the 9 October low @ 1.1432 but if that gives way it will open up a potential move back towards the year’s low @ 1.1301.