EURUSD Price Pushed Lower as German Export Sentiment Crumbles
EURUSD Price, Chart and ifo News
- EURUSD weakness persists after more German export woes.
- ECB speakers tomorrow may shed some more light on the EZ economy.
German exports continue to suffer and business confidence among German exporters has 'clearly deteriorated' according to the latest ifo export expectations survey released earlier today. The export expectations in manufacturing fell to the lowest value since October 2012, with the slowdown in the global economy cited. According to ifo President Clemens Fuest, ‘After the caution expressed in the previous month, export expectations in the automotive industry have weakened considerably, and declines in exports are expected. The same applies to the metals industry. No further growth in exports is foreseen in the mechanical engineering sector, but also no further declines. The chemical industry remains well positioned in foreign business and anticipates additional orders. The electrical industry also expects growth’.
EURUSD remains just above the 1.13 handle Tuesday but there is little in the way of hard data to help prop the pair up. Tomorrow, ECB President Mario Draghi speaks in Frankfurt at 08:00 GMT, followed by ECB board members Peter Praet, Luis de Guindos and Yves Mersch, while board member Pentti Hakkarainen speaks in Stockholm and Sabine Lautenschalger speaks in Vienna. A further round of negative news on the Euro-Zone economy could see the pair test initial horizontal support around 1.1273 before 1.1216 and 1.1176 come into play.
EURUSD Daily Price Chart (July 2018– March 26, 2019)
Retail traders are 51.9% net-long EURUSD according to the latest IG Client Sentiment Data, a bearish contrarian indicator. Recent changes in daily and weekly sentiment however give us a mixed trading bias for EURUSD.
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