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EUR/USD – Euro ticks lower as German Services PMI misses forecast

EUR/USD has recorded small losses in the Wednesday session. Currently, the pair is trading at 1.1577, down 0.04% on the day. On the release front, Eurozone and German Services PMI reports rose slightly in August. The eurozone release improved to 55.4, matching the forecast. German Services PMI climbed to 55.0, but missed the forecast of 55.2 points. In the U.S. the sole event is Trade Balance. On Thursday, Germany releases factory orders, while the U.S publishes key employment and services reports.

PMI reports are important snapshots of the strength of the economy and are closely monitored by investors. Although this week’s services and manufacturing PMI reports continue to point to expansion, the mood remains one of concern, given that the indicators have been falling short of estimates, and in some cases pointing to a downward trend. Services PMI releases in the eurozone and Germany improved in August. Eurozone Services PMI edged up from 54.2 to 54.4, while the German release climbed from 54.1 to 55.0 points. Although there are respectable numbers which point to expansion, there is some concern, as the German release missed the forecast for a second straight month.

On the manufacturing front, PMI numbers are also raising concerns. This was particularly evident in Eurozone Final Manufacturing PMI, which lost ground for an eighth straight month. The reading of 54.6, which matched the estimate, marked the lowest level since November 2016. In Germany, Final Manufacturing PMI fell from 56.9 to 55.9. Although this is a respectable reading, it is significantly lower than the readings we saw early in 2018, when the indicator was above the 60-level. German manufacturers remain generally optimistic, but have growing concerns over tariffs which the U.S has slapped on China and the EU.

Aussie jumps as growth quickens in second quarter [1]

I’m interested but not worried, oddly enough [2]

EUR/USD Fundamentals

Wednesday (September 5)

Thursday (September 6)

*All release times are DST

*Key events are in bold

EUR/USD for Wednesday, September 5, 2018

EUR/USD for September 5 at 5:50 DST

Open: 1.1582 High: 1.1608 Low: 1.1542 Close: 1.1566

EUR/USD Technical

S1 S2 S1 R1 R2 R3
1.1312 1.1434 1.1553 1.1637 1.1718 1.1840

EUR/USD ticked higher in the Asian session but has reversed directions and moved downwards in European trade

Further levels in both directions:

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.

Kenny Fisher

Kenny Fisher [6]

Market Analyst at OANDA [7]
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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