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21 Feb 2013
Forex: EUR/USD dives after German PMI
Despite a PMI pace above 50.0 in Germany, the EUR/USD is diving to new lows as investors digest Markit PMI data. From 1.3260, the pair is extending below 1.3240, already down to 1.3220.
Flash February German manufacturing PMI turned expansionary as expected, but instead of rising from 49.8 to 50.5, it only rose to 50.1. Services PMI eased from 55.7 to 54.1 (consensus of 55.5).
French manufacturing data improved from 42.9 to 43.6 and services PMI eased from 43.6 to 42.7. EMU Markit PMI is next in line.
“Key support at 1.3202, the 7 month uptrend, is exposed and a close below here is required to negate the up move completely”, wrote Commerzbank analyst Karen Jones. “Please note given strength of the US Dollar elsewhere this is looking increasingly likely”, she added,
Flash February German manufacturing PMI turned expansionary as expected, but instead of rising from 49.8 to 50.5, it only rose to 50.1. Services PMI eased from 55.7 to 54.1 (consensus of 55.5).
French manufacturing data improved from 42.9 to 43.6 and services PMI eased from 43.6 to 42.7. EMU Markit PMI is next in line.
“Key support at 1.3202, the 7 month uptrend, is exposed and a close below here is required to negate the up move completely”, wrote Commerzbank analyst Karen Jones. “Please note given strength of the US Dollar elsewhere this is looking increasingly likely”, she added,