Euro Slides Lower Over Worries of Weakening in German Economy

The Euro continues to trade weak against the US dollar early on Tuesday after falling 0.2% lower over weak manufacturing data.

Arslan Butt•Tuesday, September 24, 2019•1 min read

The Euro continues to trade weak against the US dollar early on Tuesday after falling 0.2% lower over weak manufacturing data. At the time of writing, EUR/USD is trading at around 1.099.

Weak manufacturing activity across the Eurozone with the German manufacturing sector falling deeper into recession during September drove the Euro lower on Monday. Germany’s flash manufacturing PMI for September dropped to 41.4 in September from a final reading of 43.5 for August.

Although the services sector continued to grow, the rate of expansion weakened in September when compared to the previous month. Moreover, after growing for nearly six continuous years, job creation also came to a standstill in Germany. According to Principal Economist at IHS Markit, Phil Smith, “With job creation across Germany stalling, the domestic-oriented service sector has lost one of its main pillars of growth. A first fall in services new business for over four-and-a-half years provides evidence that demand across Germany is already starting to deteriorate.”

The bearishness in EUR/USD has been further magnified by a strengthening in the US dollar after manufacturing activity in the US picked up in September. Trading volume and volatility in forex markets remain low presently, as traders await more news releases before entering new positions.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.