Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Euro Shrugs After Soft Data

By Kenny FisherForexAug 03, 2022 10:52AM ET
www.investing.com/analysis/euro-shrugs-after-soft-data-200628024
Euro Shrugs After Soft Data
By Kenny Fisher   |  Aug 03, 2022 10:52AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
EUR/USD
-0.41%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NG
+0.79%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

The EUR/USD has edged lower and is trading at 1.0138 in the North American session, down 0.27% on the day.

Eurozone retail sales, Services PMI fall

Today’s Eurozone data de-accelerated, which is bound to raise concerns about the health of the eurozone economy. Eurozone Services PMI dropped to 51.2 in July, down from 53.0 in June (50.6 est.). Eurozone business activity is still expanding but is barely above the 50.0 level which separates contraction from expansion. Germany’s Services PMI fell into contraction territory, dropping from 52.4 to 49.7 (49.2 est.). Earlier in the week, Germany’s Manufacturing PMI for July fell to 49.3, down from 52.0 in June. This is the first time in over two years that Germany’s manufacturing sector has recorded a decline.

There was no relief from Eurozone retail sales for June, which came in at -3.7% YoY, down from 0.4% in May. This shouldn’t come as a surprise after German retail sales in June plunged 8.8% YoY, after a 1.1% gain in May. Both readings were weaker than expected and are indicative of pessimistic consumers who are alarmed at deteriorating economic conditions in Europe and are cutting back on spending.

Will things get better before they get worse? Unfortunately, very possibly not. The war in Ukraine remains a stalemate with no sign of ending anytime soon. The fighting has caused a huge rise in wheat and oil prices, resulting in spiraling inflation worldwide, including the eurozone. Russia has cut back on energy imports in response to Western sanctions and this could result in an energy crisis in Europe this winter. The Nord Stream 1 pipeline, a major conduit of natural gas from Russia to Europe, is operating at just 20% of capacity Moscow does not seem to have any compunction about leaving Western Europe in the cold if it doesn’t ease sanctions.

EUR/USD Technical

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

EUR/USD Daily Chart
EUR/USD Daily Chart

Euro Shrugs After Soft Data
 

Related Articles

Trading Point
GBP/JPY Rebounds Swiftly   By Trading Point  - Sep 30, 2022

GBPJPY has experienced some large moves in the short term, with the price losing around 10% before it recovers back above the 160.00 mark. Moreover, the technical picture is...

Kenny Fisher
Japanese Yen Shrugs After Solid Data By Kenny Fisher - Sep 30, 2022

The yen has been drifting for most of the week and the trend is continuing today. USD/JPY is almost unchanged at 144.32.Japanese data surprises on the upsideJapan has released...

Euro Shrugs After Soft Data

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email