Euro troubles resurface as German manufacturing PMI disappoints expectations again
EUR/USD brought lower from 1.1290 to a low of 1.1265
Much like the reports on ECB doubting economic growth earlier this week, the German data earlier basically highlights the fragility of the recent rally in the euro. While the manufacturing print improved from March to April, it's the sheer disappointment relative to expectations is what markets are focusing on upon the release.
EUR/USD is sent lower as a result from 1.1290 levels to a low of 1.1265. More significantly, price is looking to hold a break below the 200-hour MA (blue line) @ 1.1284 now. A break below that will see the near-term bias shift to being more bearish again.
Despite the overall improvement in German PMI data from March to April, the manufacturing sector continues to be weak (contracting for a fourth month in a row) and that's enough to put a drag on the euro and bund yields considering that factory activity is the backbone that drives the German economy.
For EUR/USD, it looks like sellers are back in near-term control and that bodes ill for those looking for an upside extension as we look to wrap up the week. Further support is now seen near 1.1250 before additional support at 1.1215-20 comes into play. Following which, bids at the 1.1200 handle will be called upon next.