News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
EUR/USD Tanks as Shocking PMIs Signal Rising Recession Risks

EUR/USD Tanks as Shocking PMIs Signal Rising Recession Risks

Justin McQueen, Strategist

EUR/USD Analysis and Talking Points

  • Euro Zone PMIs Shocking Amid Marked Slowdown in Growth
  • Euro On The Backfoot

French PMI: Much weaker than expected across board with the Manufacturing sector just slightly in expansionary territory at 51 (sub 50 = contractionary territory), marking a 19 month low. Consequently, the marked slowdown at the end of the second quarter has dragged the composite figure to a 5 month low as growth falls to its weakest since the peak Omicron disruption.

German PMI: Another weak set of figures, with the latest German PMI readings also falling short of expectations and further compounding the view that the Eurozone is quickly losing momentum. What’s more with the manufacturing sector falling to a 23 month low, this raises concerns over recession risks facing the Euro Area.

DailyFX Economic Calendar

EUR/USD Tanks as Shocking PMIs Signal Rising Recession Risks

Source: DailyFX

Euro Drops: In reaction to the soft set of PMI figures, the Euro is under pressure, testing the 1.05 handle on the downside, having pulled back from the high 1.05s. Meanwhile, the German 10yr bond has rallied with yields falling as much as 14bps as markets unwind ECB tightening bets.

Support: 1.05 (Round number/psychological), 1.0470 (weekly lows), 1.0350 (YTD low)

Resistance: 1.0580 (pre-CPI level), 1.06 (weekly high/round number), 1.0636 (2020 low)

EUR/USD Chart: 1-Minute Timeframe

EUR/USD Tanks as Shocking PMIs Signal Rising Recession Risks

Source: IG

Eurozone PMI Slow to Multi-Month Lows

EUR/USD Tanks as Shocking PMIs Signal Rising Recession Risks

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

DISCLOSURES