Euro Posts Massive Drop on Disappointing German PMI Data

The  euro today dropped significantly against the  US dollar following the  release of  disappointing German PMI data by  IHS Markit in  the  early European session. The  single currency had traded in  a  slight upward trend during the  Asian session boosted by  positive market sentiment and  a  weak US dollar before plunging lower.
The  EUR/USD currency pair today rallied to  a  high of  1.1421 before crashing to  a  low of  1.1345 after the  disappointing eurozone PMIs.
The  currency pair opened today’s session backed by  positive investor sentiment due to  the  recent progress in  Brexit negotiations. The  release of  the  final German Q3 GDP data earlier today triggered a  slight decline in  the  pair despite the  print meeting expectations. According to  the  Federal Statistical Office, Germany recorded an  annualized GDP growth rate of  1.1% in  Q3. The  release of  the  Markit Germany manufacturing PMI, which came in  at  51.6 versus the  expected 52.2, triggered the  pair’s massive drop. The  Markit Germany services PMI also disappointed by  coming in  at  53.3 versus the  expected 54.5, also contributing to  the  decline. Today’s German PMI data marked the  lowest prints in  32 months.
The  Markit Eurozone manufacturing and  services PMIs both missed expectations and  contributed to  the  pair’s massive decline. Investors are worried that with the  German economy currently under-performing, economic growth within the  European Union will slowdown.
The  currency pair’s short-term performance is likely to  be influenced by  the  release of  the  Markit US manufacturing and  services PMIs later today.
The  EUR/USD currency pair was trading at  1.1349 as  at  11:01 GMT having dropped from a  high of  1.1421. The  EUR/JPY currency pair was trading at  128.08 having crashed from a  high of  128.93.

If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.