The euro today crashed to new monthly lows in the early European session following the release of multiple disappointing flash PMI readings from across the eurozone by IHS Markit. The EUR/USD currency pair later extended its losses following the release of upbeat US advance retail sales data for November in the early American session.
The EUR/USD currency pair today dropped from a high of 1.1365 to a low of 1.1268 in the American session before retracing some of its losses.
The currency pair crashed to new lows after the release of various flash PMI prints from across the eurozone, all of which missed expectations. The Markit Germany manufacturing PMI came in at 51.5 missing expectations by 0.2, while the Markit eurozone manufacturing PMI was recorded at 51.4 versus the expected 51.8 print. The Markit Germany services PMI also missed expectations by coming in at 52.5 as compared to the consensus estimate of 53.5, as did the Markit eurozone services PMI, which came in at 51.4 versus the expected 53.4. The pair had a muted reaction to the German wholesale price index for November released earlier by the Federal Statistical Office.
The release of the advance US retail sales data for November by the Census Bureau triggered a further decline by the pair, as it beat expectations by 0.1%. The retail sales figure for the control group beat expectations by a wide margin of 0.5%, also contributing to the decline.
The pair’s future performance will be influenced by geopolitical events given the upcoming weekend.
The EUR/USD currency pair was trading at 1.1299 as at 16:50 GMT having dropped from a high of 1.1365. The EUR/JPY currency pair was trading at 128.07 having fallen from a high of 129.12.
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Euro Crashes to New Monthly Lows on Weak Eurozone PMI Prints
