EUR/USD prints fresh lows below 1.09 in late New York
- EUR/USD sent down to print fresh lows in late trade on Wednesday.
- Eurozone industrial weakness and a firmer US dollar was the nail in the coffin below 1.09 for the bulls.
Despite a better risk tone on Wednesday, pertaining to relief that the coronavirus spread is showing signs of slowing down, the euro took a dive o the lowest levels since May 2017. EUR/USD has just printed a fresh low of 1.0865 and has travelled form 1.0925 the high for the day.
While central banks maintain an easing bias, we have seen relief in markets and the fear of missing out has lead US stocks higher in the US session. The US dollar has taken out the 99 handle in the DXY regardless of the safe-haven spill over drying up and the euro is taking up the punishment in the G10 FX space.
The bears have pushed the barriers today following yet further indication that industrial production had slumped in the eurozone coming in 2.1% MoM in December to leave YoY output down 4.1%. "The data reflect the extreme weakness in the national data at the end of 2019 which was probably exaggerated by US-Sino trade tensions and the intense Brexit uncertainty in Q4," analysts at ANZ Bank explained.
Weakness was broad-based across member states sends euro lower
"Weakness was broad-based across member states. The monthly drop was the largest decline since February 2016. It was led by a sharp drop in capital goods output which fell 4.0% m/m (- 6.7% y/y). The data need to bounce back in January; if not, alarm bells will be ringing loudly on every floor of the 45 story ECB tower in Frankfurt. The euro extended its weakness as a result," the analysts at ANZ Bank concluded.