ECBs Nagel (Hawk): PMI data confirms that Germany is stagnating

ECB Nagel is on the wires saying”

• PMI data confirm that Germany is stagnating and start of next year will be complicated
• Need to wait for next projections before discussing rate capsize.
• We are on the right track

Nagel is considered more of a hawk.

The EURUSD fell sharply earlier today off of the weaker than expected PMI data, The price did snapback higher moving back above the 50% midpoint of the range since the 2022 low. The 50% retracement comes in at 1.0405. The corrective high came in just below the 38.2% retracement of the range for this week’s trading. That level comes in at 1.04372.

The 50% is acting as close support at 1.0405, while the 38.2% is close resistant 1.04372. Look for breaks to help dictate the next move. Do sellers keep in firm control, or does the focus shift to a weaker dollar?

This article was written by Greg Michalowski at www.forexlive.com.