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.
Euro hit by PMI reports
The euro is trading at $1.3582. This morning France, Germany and the eurozone reported their manufacturing and services reports, which were all worse than expected.
Weak German figures were the most surprising. Prior to the the European Central Bank's monetary easing decision, Germany was the biggest opponent to the policy; now that the German economy is beginning to slow down, it may increase the likelihood of more monetary easing in the future.
The euro dropped below the $1.36 mark after the French figures, and if it drops below $1.3560 the next target would be $1.35. This level has provided support to the euro in recent weeks.