Euro slides after IFO report
The euro is off versus the US dollar as German business sentiment declines.
The EUR/USD is trading at $1.3621, down 0.25% after the German IFO business survey showed a drop in confidence in May; the decline was even larger than what the markets expected.
This morning Italy revealed a 0.2% drop in retail sales in March, which was below expectations. The soft economic data from the eurozone is adding fuel to the fire that the European Central Bank will engage in monetary easing next month.
As Alastair McCaig noted, the EUR/USD is below the 200-day moving average which is a bearish indicator. Because the euro is in oversold territory versus the US dollar, we could retest the $1.37 mark before breaching the $1.36 level.