- EUR/USD adds to Thursday’s losses below the 1.0800 mark.
- Flash Manufacturing PMIs in Germany and EMU disappoint in March.
- US Durable Goods Orders, advanced PMIs next on tap across the pond.
Further selling pressure now drags EUR/USD back below the 1.0800 yardstick, or 2-day lows, at the end of the week.
EUR/USD weaker post-PMIs
EUR/USD extends the pessimism in the second half of the week and retreats from recent monthly peaks north of 1.0900 the figure on the back of the moderate pick-up in the demand for the greenback, while the mixed prints from preliminary PMIs in the euro bloc also collaborate with the corrective daily decline.
On the latter, while the Services sector in the euro area remains healthy, the Manufacturing sector still struggles to find a firmer foot after preliminary readings showed the Manufacturing PMI in Germany and the broader Euroland are expected to have eased to 44.4 (from 46.3) and 47.1 (from 48.5), respectively, during March.
Later in the US data space, Durable Goods Orders for the month of February are due seconded by flash PMIs and the speech by St. Louis Fed J.Bullard.
What to look for around EUR
EUR/USD gathers further downside traction and breaks below the 1.0800 mark on the back of some profit taking mood, the dollar’s recovery and disheartening results from the domestic calendar.
In the meantime, price action around the European currency should continue to closely follow dollar dynamics, as well as the potential next moves from the ECB in a context still dominated by elevated inflation, although amidst dwindling recession risks for the time being.
Key events in the euro area this week: European Council Meeting, EMU, Germany Flash PMIs (Friday).
Eminent issues on the back boiler: Continuation, or not, of the ECB hiking cycle. Impact of the Russia-Ukraine war on the growth prospects and inflation outlook in the region. Risks of inflation becoming entrenched.
EUR/USD levels to watch
So far, the pair is retreating 0.53% at 1.0769 and faces immediate support at 1.0732 (55-day SMA) followed by 1.0614 (100-day SMA) and finally 1.0516 (monthly low March 15). On the upside, a break above 1.0929 (monthly high March 23) would target 1.1032 (2023 high February 2) en route to 1.1100 (round level).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD extends slide below 1.0300, touches new two-year low
EUR/USD stays under bearish pressure and trades at its lowest level since November 2022, below 1.0300 on Thursday. The US Dollar benefits from the risk-averse market atmosphere and the upbeat Jobless Claims data, causing the pair to stretch lower.
GBP/USD slumps to multi-month lows below 1.2400 on broad USD strength
Following an earlier recovery attempt, GBP/USD reversed its direction and declined to its weakest level in nearly eight months below 1.2400. The renewed US Dollar (USD) strength on worsening risk mood weighs on the pair as trading conditions normalize after the New Year break.
Gold benefits from risk aversion, climbs above $2,650
Gold gathers recovery momentum and trades at a two-week-high above $2,650 in the American session on Thursday. The precious metal benefits from the sour market mood and the pullback seen in the US Treasury bond yields.
These 5 altcoins are rallying ahead of $16 billion FTX creditor payout
FTX begins creditor payouts on January 3, in agreement with BitGo and Kraken, per an official announcement. Bonk, Fantom, Jupiter, Raydium and Solana are rallying on Thursday, before FTX repayment begins.
Three Fundamentals: Year-end flows, Jobless Claims and ISM Manufacturing PMI stand out Premium
Money managers may adjust their portfolios ahead of the year-end. Weekly US Jobless Claims serve as the first meaningful release in 2025. The ISM Manufacturing PMI provides an initial indication ahead of Nonfarm Payrolls.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.