We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Commodities Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.82% Silver: 0.04% Gold: -0.31% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/O3RaJ4mr4W
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.79% 🇳🇿NZD: 0.68% 🇬🇧GBP: 0.46% 🇨🇦CAD: 0.17% 🇨🇭CHF: 0.07% 🇯🇵JPY: -0.18% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/UMZm9sOyoN
  • GBPAUD down 25 big figures since April 2...will today's EU/UK briefing by Michel Barnier (12:00 BST) halt or accelerate the sell-off? #gbpaud #sterling #euuktalks https://t.co/QCTg3VugSj
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Germany 30: 1.17% France 40: 1.08% Wall Street: 0.92% US 500: 0.80% FTSE 100: 0.66% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/MwxVWpqxb3
  • EU's Barnier scheduled to speak at 1200BST following EU-UK trade talks
  • The #Dow Jones, #Nasdaq and S&P 500 have continued to melt higher in recent days even as bullish catalysts seem to sputter out. Get your #equities market update from @PeterHanksFX here: https://t.co/6QGkvWJ20E https://t.co/3ysgLGSUIJ
  • Heads Up:🇮🇳 Monetary Policy Meeting Minutes due at 05:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-06-05
  • 🇯🇵 Leading Economic Index Prel Actual: 76.2 Expected: 84.5 Previous: 85.1 https://www.dailyfx.com/economic-calendar#2020-06-05
  • 🇯🇵 Coincident Index Prel Actual: 81.5 Expected: 90.3 Previous: 88.8 https://www.dailyfx.com/economic-calendar#2020-06-05
  • 🇯🇵 Leading Economic Index Prel Actual: 72.6 Expected: 84.5 Previous: 85.1 https://www.dailyfx.com/economic-calendar#2020-06-05
EURUSD Price Falls on Disappointing Eurozone PMIs, ECB Ahead

EURUSD Price Falls on Disappointing Eurozone PMIs, ECB Ahead

2019-01-24 09:35:00
Martin Essex, MSTA, Analyst
Share:

EUR price, news and analysis:

  • The European Central Bank looks less likely than ever to tighten monetary policy in the third quarter of this year.
  • Ahead of its rate decision at 1245 GMT, Eurozone PMIs suggest the region’s growth is stalling.
  • That has weakened EURUSD, which could now fall further.

Eurozone PMIs indicate stalling economy

EURUSD has fallen in the wake of a disappointing set of Eurozone PMI data, suggesting the bloc’s economic growth is stalling. That implies further downside risks to the pair as speculation grows that the European Central Bank will not raise interest rates until the fourth quarter of this year and perhaps not until 2020.

EURUSD Price Chart, Five-Minute Timeframe (January 24, 2019)

Latest EURUSD price chart.

Chart by IG (You can click on it for a larger image)

In its latest report, IHS Markit, which calculates the PMI data, says Euro area business growth came close to stalling at a 5½ year low in January. Its key findings were:

  • Flash Eurozone PMI Composite Output Index at 50.7 (51.1 in December), a 66-month low
  • Flash Eurozone Services PMI Activity Index at 50.8 (51.2 in December), a 65-month low.
  • Flash Eurozone Manufacturing PMI Output Index at 50.4 (51.0 in December), a 67-month low.
  • Flash Eurozone Manufacturing PMI at 50.5 (51.4 in December), a 50-month low.

Commenting on the data, Chris Williamson, Chief Business Economist at IHS Markit said: “The Eurozone economy slipped closer to stall speed in January, with companies reporting the first drop in demand for over four years. The disappointing survey data indicate that GDP is rising at a quarterly rate of just 0.1%.

Join DailyFX analyst Nicholas Cawley for his webinar covering the ECB decision live from 1230 GMT. You can sign up here.

Resources to help you trade the forex markets:

Whether you are a new or an experienced trader, at DailyFX we have many resources to help you:

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.