The Euro continues updating its lows. Overview for 03.09.2019

On Tuesday afternoon, EURUSD continues weakening; it is testing the bottom reached in March 2017.

The major currency pair is still trading downwards and updating the lows of early 2017. The current quote for the instrument is 1.0947.

The key reason why EURUSD is falling is global trader wars. In this light, demand for the USD, which acts as a “safe haven” asset, in going up. 

The statistics published yesterday showed that the German Manufacturing PMI reduced down to 43.5 points in August after being 43.6 points in July. It’s not too stressful for the Euro and Germany, but may be considered as another sign that the German economy is experiencing difficult times. The fact that the indicator remains below 50 points, which separates growth from decline, makes investors worry. 

Another thing that is against the European currency is the loosening of the ECB’s monetary policy, which may be expected soon. 

The numbers that came from the Euro Area today were worse than expected. The PPI added 0.2% m/m in July after losing 0.6% m/m the month before and against the expected reading of +0.3% m/m. It’s quite all right, but can’t be considered very positive. 

Later in the afternoon, the USA is scheduled to report on the ISM Manufacturing PMI for August, which is expected to remain unchanged at 51.2 points. In case the actual number is better, the USD may get additional support.