- The pair’s move to session tops run out of steam above 1.1360.
- EMU, German advanced manufacturing PMI dropped further.
- ECB minutes, US Philly Fed index coming up next.
After climbing to the 1.1360/65 band earlier in the session, EUR/USD lost upside momentum and it has now receded to the 1.1330 region.
EUR/USD weaker post-PMIs, looks to ECB, data
Spot has now come under renewed downside pressure and is giving away initial gains following the poor prints from advanced manufacturing PMIs in core Euroland.
In fact, flash readings for the current month showed the manufacturing sectors in Germany and the broader euro area are expected to drop further into the contraction territory (below the 50 threshold), adding to the ongoing concerns over the fundamentals in the region and pouring cold water over the likeliness of a rebound in the near term at least.
Later in the day, investors will closely follow the release of the ECB minutes, with special attention on the views and opinions of the Council regarding the health of the economy and prospects of monetary policy.
What to look for around EUR
The shared currency continues to look to developments from the US-China trade talks for near term direction as well as any headlines from the effervescence on the US-EU trade front. Disappointing advanced prints from manufacturing PMIs in Germany and the euro bloc appear to have exacerbated concerns over the deterioration in the bloc’s fundamentals and casted further shadows over the probability of any action on rates from the ECB this year.
EUR/USD levels to watch
At the moment, the pair is losing 0.08% at 1.1327 and a break below 1.1308 (10-day SMA) would aim for 1.1234 (2019 low Feb.15) and finally 1.1215 (2018 low Nov.12). On the flip side, the next hurdle emerges at 1.1371 (high Feb.20) seconded by 1.1382 (55-day SMA) and then 1.1394 (100-day SMA).