EUR/USD 1-minute chart
That translates to roughly a 30-pip drop after a slight nudge higher on the French PMI headline i.e. services sector beat. But the details continue to highlight problematic issues with the euro area economy as a whole – in particular Germany. Consumption activity is declining and alongside extremely poor manufacturing sector activity, a recession looks to be underway for the region’s biggest economy.
While EUR/USD has fallen, it has only served to erase the gains for the day as the pair now trades around 1.0660-65. The dollar is also considerably weak amid falling yields, so there’s that to offset the negative sentiment from the data in Europe.
And from a technical perspective, EUR/USD still has a shot of rebounding further so long as it keeps above the 1.0643 mark – a level noted earlier here. Elsewhere, the euro is finding it to be a tougher challenge with EUR/GBP threatening a test of the 200-day moving average at 0.8692 currently.