We´ve been totally hypnotised by the FED rate cut decision last evening and by the price action in USD pairs. Well, EUR/USD just broke below the 1.0450-60 support level which we highlighted in the previous update and which can´t be ignored by any means.
But, the market obsession with the USD since last evening is not everything in forex today. Europe is having a pretty good day regarding the economic data. In our first market update, we mentioned that the French manufacturing and services PMI beat the expectations.
At 53.5 and 53.6, these sectors of French economy are in a good shape, but the most important thing is that they are moving further away from flat levels. The French economic recovery has been one of the weakest among EU major countries, but now it seems like it´s catching up with its neighbours, so this is another good signal that the Eurozone economy is finally out of the long term trouble it´s been in.
The German manufacturing PMI was also pretty good, but the services missed the expectations, same as for the entire Eurozone. Anyway, the EU service sector remains pretty upbeat, but we cannot say so for the Euro. EUR/USD is getting beaten up as I type and the positive numbers from Europe can´t save the single currency at the moment.
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