• Concerns about German economic slowdown continue to weigh on the shared currency.
• ECB’s latest monthly economic bulletin further dents the already weaker sentiment.
• The ongoing USD bulls run adds to the bearish pressure and contributed to the downfall.
The EUR/USD pair remained depressed through the mid-European session and dropped to fresh 22-month lows, around the 1.1130 region in the last hour.
Having consolidated in a narrow range during the early part of Thursday’s trading action, the pair came under some renewed selling pressure since the early European session and extended its recent bearish trajectory for the third consecutive session.
The already weaker sentiment surrounding the shared currency deteriorated further after the ECB, in its monthly economic bulletin for April, reiterated that risks to the Euro-zone economic growth remains tilted to the downside and ample degree of accommodation is still needed.
This comes against the backdrop of growing concerns of a sharp economic slowdown in the region’s largest economy, triggered a steep decline in German bond yields overnight. In fact, the yield on the benchmark 10-year bond remained in the negative territory and continued affecting the shared currency in a negative manner.
Adding to this, a follow-through US Dollar upsurge to the highest level since June 2017, supported by the recent positive US economic data, further collaborated to the pair’s heavily offered tone/the ongoing slump further below mid-1.1100s.
Moving ahead, today’s US economic docket – highlighting the release of durable goods orders, will now be looked upon to some fresh impetus and in order to grab some meaningful trading opportunities later during the early North-American session.
Technical levels to watch