German data weighs on euro

The euro is off versus the US dollar, after Germany reported weaker-than-expected manufacturing figures.

The EUR/USD is trading at $1.3768, down 0.18% as the surprise drop in German services and manufacturing dragged overall eurozone figures lower. While Brussels revealed eurozone manufacturing and services purchasing managers index (PMI) both declined and were worse-than-expected in March, the respective figures from Germany dragged the eurozone average even lower. It wasn’t all bad news, however, as France reported a manufacturing and services PMI of 51.9 and 51.4; both announcements were much higher than anticipated.

While the EUR/USD initially jumped when the French reports were released – as, even though France is the second largest economy in the eurozone, its economic indicators have been sliding into the red lately – the other figures quickly dragged the euro into the red versus the dollar. This has added to the euro still being unable to pull back its losses following the Federal Reserve’s comments last week, as well the grey cloud of Crimea still hanging over Europe.

The currency pairing has been in an uptrend since the start of February, but it failed to break the $1.4 level. It is finding support at the 50-day moving average of $1.3727. If the US manufacturing PMI report at 1.45pm (London time) is better-than-expected, we could see the euro head towards the 200-DMA of $1.3575.

Spot FX EUR/USD chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.