Euro trending points
- A disappointing EU PMI indicated that the Q4 growth stalled on 0.3%, smashing the Euro towards its key support level at 1.1330s.
- EUR/USD pair had remained inconclusive, as EUR is struggling to make a decisive move higher
- The third rejection of revised Italy budget had just fueled up the hit, juggling a EUR jolting.
EUR/USD uptrend faltered, as EURO-Zone PMI failed to meet expectation
The November PMI had indicated that the business activity in the Euro area, had been at its weakest levels in nearly four yearly lows, in the face of weaker order book growth and export plunge. As Markit mentioned, the slowdown in the business activity had been most pronounced in the manufacturing sectors, as the output rose slightly “marginally”.
However, the cooling of Euro zone business growth to a four yearly low had triggered the signs of a devastating end of the year. Manufacturing remained among the key areas of weakness, where deteriorating export rates had also been battered hard. The two-month downtrend of EUR/USD had placed the paid at a tight range between 1.1340-1.1448, further supports levels are lying at 1.1301 regions.
EUR/USD daily price chart
While this report has been written, the Euro is being traded at 1.1334 slipping sharply towards its key resistance level at 1.1290-1.1301. A fall below its critical support level could result in a devastating end of the year, as Euro continued to choke, gobbling the downtrend.
Italy budget issue just fueled the Euro slip, as its budget had been rejected for the third time yesterday, as this time, Italy would be facing sanctions from the EU, if they failed to meet the budget demands of EU commissions, yet politicians on Italy, seemed lacking interest.
As Euro dips and Euro zone PMI plunges, a further downfall for Euro is more likely, while Italy remained vociferous in their current course regarding the budget. EU-UK text draft is highly unlikely to pass through the House of Commons in UK, could aggravate the EURO bearish trend.
At this standpoint, Euro seemed to be falling apart, a further downfall below 1.1301 is likely to happen, while GBP has buckled itself down, at the 1.2800 area, as USD has been soaring reigning over 96.40 and EUR/GBP upsurge failed to sustain momentum as forecasted, reigning at 0.8850.
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[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]