EUR/USD (current price: 1.0918)
The common currency hit a new 3-month low against the USD as it continued its recent trend as we expected. The German PPI was way worse than expected with a monthly reading of -0.2%, while the Eurozone Current Account Balance beat the consensus estimate on Thursday with a surplus of €29.7 billion, thanks in part to the weakness of the Euro. The pair broke below the strong support near 1.0950, as the FED remains possibly the most hawkish major central bank.
Our assessment: EUR/USD started a new leg in its declining short-term trend, as it remains below the 200-day MA, although a dovish change in the FED’s rhetoric could turn the tide before the November meeting.
