It should surprise us that there was no real effect in the euro after the Italian GDP data but most of us have given up trying to work out how and why old teflon moves. It could be that the PMI data yesterday set the tone for today’s data but that’s maybe a bit of a stretch.
While EUR/USD flops around at 1.3365 stock markets need no extra help to take a tumble and the GDP data was some icing on the cake for the FTSE Mib to take another leg lower. It’s down 2.7% at the moment.
FTSE Mib 15m chart 06 08 2014
Looking further out it’s June 2013 you have to look back to to see a correction nearing this scale.
FTSE MIB daily chart 06 08 2014
Since support broke around 21000 it’s been using that line as resistance before really crapping out.
The signs are starting to point to a developing bear trend at the moment and not not just a corrective phase.