EURUSD Price Edges Higher, Shrugs Off Weak Inflation, PMI Prints
EURUSD Price and Analysis, Euro-Zone Inflation and PMIs:
- EURUSD nudging out of oversold territory.
- German manufacturing PMI confirmed even lower.
- Euro-Zone inflation misses expectations.
Another set of weak PMI prints in the Euro-Zone with the March final releases missing already weak preliminary results. Ongoing weakness in the manufacturing space has weighed on the single currency in the past few weeks and today’s results will only add to thoughts that the Euro-Zone may need a helping hand from the ECB to re-start the economy. Wednesday’s final services and composite PMIs will now be watched closely for further signs of economic weakness. In addition, the latest inflation numbers for the single-block also missed target with core CPI y/y falling to 0.8% from 1.0% in February while headline CPI nudged 0.1% lower to 1.4% y/y.
The bad economic news did little to dampen the Euro in early turnover with EURUSD posting small gains, helped in part by a slightly weaker US dollar. The greenback is currently finding further upside difficult, especially after recent economic releases, and looks likely to drift lower in an effort to find short-term support. EURUSD has found support around 1.1200 and may take a run at the 1.1260-1.1280 area. The pair is edging out of oversold territory and while the chart remains bearish in the longer-term, a re-test of 1.1300 cannot be discounted.
EURUSD Daily Price Chart (July 2018 – April 1, 2019)
Retail traders are 67.4% net-long EURUSD according to the latest IG Client Sentiment Data, a bearish contrarian indicator. Recent substantial changes in daily and weekly sentiment, increasing retail traders net-long positions, give us a stronger bearish trading bias for EURUSD.
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