The PMI data continued to contract in Germany and the European Central Bank indicated that the slowdown in the regional economy in July would indicate that the slowdown in the regional economy would take longer than expected.
EUR / USD, which rose to 1.1250 level due to mutual reprisals between the US and China and the decline in the US Dollar Index, experienced a sharp decline last week as the US postponed sanctions and continued negotiations. This week, on the other hand, the dollar continued to gain gains in global markets, and the euro fell to 1.1055 as the euro fell with weak data.
In addition to global risks, serious deterioration in the Eurozone economy increases the likelihood that the ECB will use the interest rate instrument in its additional expansion step, and the euro is expected to remain weak.
Eyes on the last trading day of the week Fed President Powell’s presentation at Jackson Hole, and more hawkish statements than market expectations, could lead to a sharp fall in the pair.
1.1030 level seen as the nearest support on August 1, while possible recovery is expected to remain limited at 1.11.