The euro is sliding in European morning trade as poor PMI data from France and Germany is weighing on the mood in the single currency. The ECB has already highlighted their shift in focus towards the economy and the data today vindicates that. And if anything, it might just add to the case for them to move quicker than needed.
EUR/USD weekly chart
EUR/USD has now fallen to its lowest since December 2022, breaking the October 2023 low of 1.0448. As mentioned here, there is now an increased risk of the pair falling even more rapidly as the weekly break under 1.0500 looks to be reaffirmed.
The chart shows little to no support on the way down and that’s a tough technical situation to be in for euro buyers. With the outlook also increasingly more challenging amid Trump tariffs next year, it looks like there will be more pain to come before things settle down.
And it’s not just EUR/USD that is one to watch out for, EUR/CHF is also on the verge of cracking to fresh record lows now:
EUR/CHF daily chart