View: Key EUR/USD1.1700/1.2000 long-term pivot zone now the draw
EUR/USD’s decline continues at a rather precipitous pace, the rally in the early part of the week snuffed out as soon as first resistance was hit at 1.2825, and following the weak German Ifo number on Thursday morning the pair slid to new multi-month lows sub 1.2520 before bouncing. And to make matters worse the flash PMI’s continue to point to an imploding regional economy, the Eurozone composite miss at 45.9 vs. 46.6 consensus the weakest read since June 2009, oh dear. It would be even worse were it not for a still resilient German services PMI number (52.2 from 52.0). At least this data moved with trend, the reversal in Ifo is more serious in that it shows that the resilient survey data which some have been clinging to is finally beginning to catch up with weak German real economy data, something we’ve discussed previously.
Full report below…
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