EUR sinks on worsening economic data
The euro dropped against all other major currencies as Germany and France posted disappointing Services PMI (Purchasing Manger's Index) figures showing that the Eurozone's recovery is losing momentum. The broader European Services PMI figures, often seen as a barometer of economic health, fell to 50.1 against an expected rise to 54.6.
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After the easing of lockdown restrictions last month, activity in the Eurozone rose at its fastest rate since the middle of 2018. The significant drop in the services data will likely concern policymakers on the momentum of a potential economic recovery. A number above 50 does represent an expansion but the number missed every single forecast.
Andrew Harker, the Economics Director at IHS Markit which produces the figures said: "The euro zone's rebound lost momentum in August, highlighting the inherent demand weakness caused by the COVID-19 pandemic."
The slowdown in the services sector due to a lack of demand has also led to a lower headcount which has forced the employment index to fall to 47.7 from 47.9 - another concern for policymakers. The only shining light was an improving manufacturing sector but only for Germany.
How to trade EURUSD with Admiral Markets UK Ltd
If you are feeling bullish or bearish on the price of EURUSD you can speculate on its price direction using CFDs. To get started, follow these five simple steps:
- Log in to your existing Admiral Markets trading account, or open a live or demo trading account in just a few minutes.
- Click Trade on your chosen account which will direct you to the Admiral Markets MetaTrader Web Platform.
- Type in EURUSD at the bottom of the Market Watch search box and then drag the symbol onto the chart.
- Use the one-click trading feature on the chart or right-click on select Trading -> New Order.
- Choose your entry, stop loss and target levels and position size (volume) and then confirm the trade.
Source: Admiral Markets MetaTrader 5 Web, EURUSD, Weekly - Data range: November 20, 2011, to August 21, 2020. Please note: Past performance is not a reliable indicator of future results.
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