Forex: EUR/USD tumble finds low at 1.3074 after EMU PMI
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EUR/USD
FXstreet.com (Barcelona) - Having peaked at 1.3120 (three month resistance line) ahead of the European opening, a triggered selloff sent the EURUSD in a 45-pip plunge to 1.3074 as preliminary Markit PMI data was released in France, Germany and now the Eurozone.
The flash Markit PMI Composite came in higher than expected at 47.3 in December, from 46.5 and with only a rise to 46.8 predicted. The manufacturing flash figure rose from 46.2 to 46.3, short of the expected 46.6 in December. Services PMI rose from 46.7 to 47.8, beating the 47.0 consensus.
The French manufacturing preliminary figure disappointed by only rising from 44.5 to 44.6, instead of going up to 44.9 in December. The same happened in Germany, down from 46.8 to 46.3, instead of rising to 47.2. Services data in both countries beat consensus, at 46 (France) and 52.1 (Germany).
Also in the news is the Fitch rating agency take on France, keeping its rating at AAA, but with a negative outlook. The French finance minister interpreted the rating as a motivating force.
Commerzbank analysts expect the 1.3100 mark and the three month resistance line at 1.3121, the 1.3127 current December high and the 1.3140 October peak to provoke a sell-off back towards the psychological 1.3000 region. "Failure here will probably kick start a slide back to the 1.2880/76 support area", wrote analyst Axel Rudolph.
The flash Markit PMI Composite came in higher than expected at 47.3 in December, from 46.5 and with only a rise to 46.8 predicted. The manufacturing flash figure rose from 46.2 to 46.3, short of the expected 46.6 in December. Services PMI rose from 46.7 to 47.8, beating the 47.0 consensus.
The French manufacturing preliminary figure disappointed by only rising from 44.5 to 44.6, instead of going up to 44.9 in December. The same happened in Germany, down from 46.8 to 46.3, instead of rising to 47.2. Services data in both countries beat consensus, at 46 (France) and 52.1 (Germany).
Also in the news is the Fitch rating agency take on France, keeping its rating at AAA, but with a negative outlook. The French finance minister interpreted the rating as a motivating force.
Commerzbank analysts expect the 1.3100 mark and the three month resistance line at 1.3121, the 1.3127 current December high and the 1.3140 October peak to provoke a sell-off back towards the psychological 1.3000 region. "Failure here will probably kick start a slide back to the 1.2880/76 support area", wrote analyst Axel Rudolph.
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