Euro/dollar awaits yet another day of Eurogroup meetings, and it does not seem optimistic. The pair trades around 1.1350, below support and in the lower range.
The instant German rejection of the Greek proposal causes a divide in the euro-zone, and could still be repaired. Negotiations continue in Brussels, Athens, Berlin and wherever.
In the meantime, French purchasing managers’ indices show mixed numbers: manufacturing PMI disappointed with a drop from 49.2 to 47.7 points. On the other hand, services returns to growth territory with a leap to 53.4 points. The 50 point level separates growth from contraction.
Later we have the German PMIs, which are both expected to remain in growth territory above 50 points and then the all European numbers for February.
Update: German PMIs come in mixed – EUR/USD remains low
The big event is the Eurogroup meeting that officially commences at 14:00 GMT and could last long hours. However, negotiations are ongoing in the background, with yesterday’s working group at the deputies level lasting for 7 hours. In addition, leaders are also talking on the phone. We know that Merkel and Tsipras talked, but perhaps a meeting is necessary.
More: EUR/USD: Bearish short and long term – Citi
Here is the chart:
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