Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Euro Continues To Drift

Published 08/04/2022, 10:14 AM
Updated 07/09/2023, 06:31 AM

The euro is showing little movement for a second straight day. In the North American session, EUR/USD is trading at 1.0187, up 0.14% on the day.

With a light economic calendar today in both the U.S. and Europe, the euro is likely to continue to have a quiet day. Investors shrugged after a soft reading from German Factory Orders earlier today, with a decline of 0.4% in June. This was better than the forecast of -0.8% but lower than the May reading of -0.2% (revised from +0.1%).,

German Factory Orders have now posted declines for five straight months, reflecting prolonged weakness in the manufacturing sector. Earlier this week, German Manufacturing PMI slipped into contraction territory for the first time in over two years, with a reading of 49.3. German manufacturing has been hurt by the slowdown in the global economy, and the slowdown in manufacturing is reflected in these two indicators. This raises concerns about the strength of the German economy, as well as the entire Eurozone, as Germany is a bellwether for the rest of the bloc.

It is a stretch to paint an optimistic picture for Germany and the Eurozone, with the war in Ukraine dragging on and a possible energy crisis courtesy of Russian President Vladimir Putin. Inflation in the Eurozone shows no signs of peaking and the European Central Bank is playing catch-up, having finally raised interest rates last month for the first time in a decade. Russia has demonstrated that it is willing to weaponize its energy exports, and that could lead to an energy shortage ahead of winter, which is only a few months away.

EUR/USD Technical

  • EUR/USD is testing resistance at 1.0194. Above, there is resistance at 1.0291
  • There is support at 1.0130 and 1.0033
  • EUR/USD Daily Chart.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Latest comments

This didn’t age well…. and it’s only 5 hours later
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.