EURUSD: More dark clouds over the single currency
The Eurozone noted a poor result in yet another industry, gathering more dark clouds over the single currency. As ECB’s policymakers struggle to boost growth and drive up low inflation, the manufacturing growth stalled in November as new orders fell at the fastest pace in 19 months.
November’s PMI (50.1) is barely above the level that separates growth from contraction, and is a sign that there is little prospect for improvement in December. As market participants don’t expect the European Central Bank to alter its already very loose policy (ECB meeting scheduled for this Thursday), including the interest rate to remain at all-time low 0.05%, the single currency may be exposed to further selling offs.
What to expect? Our view remains bearish with level 1.2360 on watch as any major moves below will open path for 1.20 – 1.21 zone.
The Eurozone noted a poor result in yet another industry, gathering more dark clouds over the single currency. As ECB’s policymakers struggle to boost growth and drive up low inflation, the manufacturing growth stalled in November as new orders fell at the fastest pace in 19 months.
November’s PMI (50.1) is barely above the level that separates growth from contraction, and is a sign that there is little prospect for improvement in December. As market participants don’t expect the European Central Bank to alter its already very loose policy (ECB meeting scheduled for this Thursday), including the interest rate to remain at all-time low 0.05%, the single currency may be exposed to further selling offs.
What to expect? Our view remains bearish with level 1.2360 on watch as any major moves below will open path for 1.20 – 1.21 zone.
