EURUSD Coronavirus vs Manufacturing PMIs
EUR/USD is trending lower on Monday as coronavirus fears overshadow tentative signs of recovery in eurozone and German manufacturing sector.
Share this:
EUR/USD is trending lower on Monday as coronavirus fears overshadow tentative signs of recovery in eurozone and German manufacturing sector.
- EZ manufacturing PMI 47.9 vs 47.8 exp.
- German manufacturing 45.3 vs 45.2 exp.
Manufacturing across the Eurozone, but most predominantly in Germany, Europe’s largest economy had been hit hard by the US – China trade dispute and slowing trade. The signing of the first phase trade deal between US and China appears to be lifting confidence which is slowly filtering through to stronger global trade and the manufacturing sector.
The data comes following disappointing German retail sales on Friday which showed a decline of -3.3% month on month, despite consumer confidence picking up. The German economy is by no means out of the woods, but there are some signs of green shoots of recovery.
Coronavirus impact remains unclear
However, investors are unable to get too excited here as Germany is expected to see its exports weaken once again, but this time owing to coronavirus. The outbreak in China, Germany’s largest trading partner has disrupted business there with a significant economic impact expected, which is bound to negatively affect German exports.
The dollar started the week higher boosted by safe haven flows amid ongoing concerns surrounding coronavirus. The number of official cases has risen to 17,000 with 360 deaths, including one outside of China.
US data has underwhelmed recently with downbeat consumer spending and inflation. Today traders will look towards US ISM manufacturing figures, which are expected to show a recovery in the sector from its 477.2 level in December.
Levels to watch:
EUR/USD has fallen below 200 & 100 sma on 4-hour chart, although remains above 50 sma.
The 50 sma offers near term support at $1.1040, a breakthrough here could open the doors to $1.0992, the low for 2020 year to date.
On the flip side, resistance can be seen at $1.11 (round number, high 31st Jan), prior to $1.1120 (high 21st Jan) and $1.1174 (high 16th Jan).
EUR/USD is trending lower on Monday as coronavirus fears overshadow tentative signs of recovery in eurozone and German manufacturing sector.
- EZ manufacturing PMI 47.9 vs 47.8 exp.
- German manufacturing 45.3 vs 45.2 exp.
Manufacturing across the Eurozone, but most predominantly in Germany, Europe’s largest economy had been hit hard by the US – China trade dispute and slowing trade. The signing of the first phase trade deal between US and China appears to be lifting confidence which is slowly filtering through to stronger global trade and the manufacturing sector.
The data comes following disappointing German retail sales on Friday which showed a decline of -3.3% month on month, despite consumer confidence picking up. The German economy is by no means out of the woods, but there are some signs of green shoots of recovery.
Coronavirus impact remains unclear
However, investors are unable to get too excited here as Germany is expected to see its exports weaken once again, but this time owing to coronavirus. The outbreak in China, Germany’s largest trading partner has disrupted business there with a significant economic impact expected, which is bound to negatively affect German exports.
The dollar started the week higher boosted by safe haven flows amid ongoing concerns surrounding coronavirus. The number of official cases has risen to 17,000 with 360 deaths, including one outside of China.
US data has underwhelmed recently with downbeat consumer spending and inflation. Today traders will look towards US ISM manufacturing figures, which are expected to show a recovery in the sector from its 477.2 level in December.
Levels to watch:
EUR/USD has fallen below 200 & 100 sma on 4-hour chart, although remains above 50 sma.
The 50 sma offers near term support at $1.1040, a breakthrough here could open the doors to $1.0992, the low for 2020 year to date.
On the flip side, resistance can be seen at $1.11 (round number, high 31st Jan), prior to $1.1120 (high 21st Jan) and $1.1174 (high 16th Jan).
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
EUR/USD Q4 2026 Outlook: Euro at a Crossroads as Fed, ECB Tighten 9 25 2026
EUR/USD enters Q4 at a pivotal inflection point as competing Fed-ECB policy paths and persistent inflation risks collide with major technical support.
USD/JPY Q4 2026 Outlook: Hawkish Fed Pricing Clashes With Intervention Risk
The year-end tug-of-war is clear: hawkish Fed pricing supports USD/JPY, while intervention risk limits the upside.
Japanese Yen Forecast: USD/JPY 4% Rally Challenges Post-Intervention Downtrend 9 24 2026
USD/JPY momentum has shifted sharply higher, putting a major resistance confluence in focus as U.S. and Japanese event risk builds.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.