Weak German PMI overshadows less negative France print
Keeps EUR/USD pressuring nearby support, with scope for lower
Downside on the German PMIs – composite at 48 (mkt 49.6) overshadows the better moderation (from very weak levels) from France – 47.6 (mkt 46.4) from 44.9.
That still leaves the both the major EZ economies in the negative and a much weaker and chequered picture than seen in the US to date.
Adds a bit of downside to the already pressured EUR/USD pair, at day lows after the data, amid the broader focus on: the dollar break higher, US outperformance, wobblier risk performance and recent relative CB market re-pricing. The pair is sitting right on the mid-March low and a break of 1.1410-1.1390 area would open up some further corrective downside.