The euro has fallen on the data on business activity in Germany
- German Manufacturing PMI (Mar), fact 44.7, forecast 48.0.
- German index of business activity in the services sector (Mar), fact 54.9, the forecast 54.8.
- Manufacturing PMI (Mar), fact 47.6, forecast 49.5.
- Markit Composite Business Activity Index (PMI) (Mar), fact 51.3, forecast 52.0.
- The index of business activity in the services sector (Mar), fact 52.7, forecast 52.7.
Data on business activity in the manufacturing sector (PMI) in Germany declined to six-year lows, putting significant pressure on the single currency. The dynamics of this indicator in Germany and the Eurozone shows a steady decline since the beginning of 2018. Against the background of a slowdown in employment growth, these figures indicate a significant slowdown in the eurozone economy.
Fig. 1. German business activity index in the manufacturing sector (PMI) chart
The euro has plummeted across the market. EUR/USD has updated the weekly low at 1.1290. This virtually completely broke the technical picture of the market, pointing to the resumption of the downward trend in 2018.
The EUR/USD pair formed a reversal from the 1.1450-00 zone, but it is limited by the oversold level in the decline, keeping the potential for decline at the support levels: 1.1250 and 1.1230.
Fig. 2. EUR/USD chart. Current price – 1.1290
Read also: “Candlestick analysis. Continuation patterns”
Hanzenko Anton
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