There is no rest for the falling euro. The common currency resumed its falls and is trading below Friday’s 1.2270 low level. German industrial output was OK, but OK is not enough. EUR/USD reached a new low of 1.2260.
The next support line is actually very close, but beyond this level, the road is open to very low levels.
German industrial output rose by 0.2% in October, as expected. However, this came on top of a downgrade of September’s data: from a rise of 1.4% to a rise of only 1.1%.
Yet Europe is not the only force in play: during the Asian session, Japan reported a worse recession than earlier reported. The world’s no. 2 economy squeezed by 0.5% in Q3 according to the final note. An upwards revision from -0.4% to -0.1% was expected.
Chinese trade balance data also disappointed: exports rose by only 4.7% y/y against +8% expected and imports dropped 6.7% against a rise of 3.8% predicted by economists.
This helps the dollar across the board, and the euro is certainly not immune.
Support is found at 1.2245, a line which had the same role back in 2012. Stronger support appears only at 1.2150 and then 1.2042, which is the July 2012 low.
More: ECB Post-Mortem: We remain short EUR– BNPP
And here is the chart:
