EUR/USD: Major pivot at 1.0770 – TDS

An abysmal set of Eurozone PMIs has returned EUR weakness to the front burner, economists at TD Securities reports.

Key quotes

“EU leaders meet to discuss plans to help countries hardest hit by the COVID-19 crisis. We look for little progress to be made.”

“The manufacturing PMI for the Eurozone overall fell from 44.5 to 33.6 in April (mkt 38.0), while services absolutely plunged from an already record-low level of 26.4 to only 11.7 in April (mkt 22.8). This raises the risk of another round of growth downgrades for the Eurozone.”

“Our focus in EUR/USD is the major pivot at 1.0770. A close below this would signal the return of a new, lower trading range in spot that could see a test of the March low at 1.0636.”