EUR/USD (current price: 1.1290)
The Markit Eurozone PMIs came out yesterday, and the releases were generally in line with expectations, showing modest growth in most segments. The German Service sector posted a negative surprise as the index came in at 53.3 compared to the projected number of 54.3. The slightly disappointing data caused a decline in the value of the Euro, although the U.S. releases were also worse than expected yesterday, especially the Richmond Manufacturing Index that experienced the strongest monthly decline in more than a year.
Our assessment: EUR/USD trades just above the crucial 1.1285 support/resistance zone, with a slightly bullish bias, as the long-term picture is still neutral, and both economies are growing at a slow pace.
