Euro dives broadly in Europeans as terrible German manufacturing data points to worsening contraction in the sector. DAX also reversed initial gain and is currently down around -0.7%. Germany 10 year yield dropped to as low as 0.002, down -0.042, on the brink of turning negative.
With 1.1335 minor support broken, EUR/USD’s rebound form 1.1176 should have completed at 1.1448. Deeper fall would be seen back to 1.1176 low.
In short, Germany PMI manufacturing dropped sharply to 44.7, down from 47.6 and missed expectation of 48.0. If not for services sector, the German economy should already be in recession. Forward looking indicators are not encouraging with overall job creation at its lowest since 2016. The worst may not be over yet.
