EUR flows: EUR steady but some corrective decline possible
EUR steady after weakish German orders data, but gains above 1.11 look a bridge too far and there is scope for a pullback towards 1.10
German manufacturing orders this morning have come in weaker than expected for February, but there has also been an upward revision to January, so the trend picture is little changed. The numbers are volatile but the big picture story is still that the trend is fairly flat, but we will need to see some improvement in the next month to prevent an impression that the trend is turning lower.
EUR/USD has held near 1.11 overnight, with some of the rise yesterday having been belatedly justified by a decline in US yields later in the US session. But EUR/USD still looks a little stretched at current levels, and we favour a move back towards 1.10.