The Euro has once again hit a new low for the month of September after failing capitalize on better than expected figures released earlier today which shows the negative sediment currently underway against the European currency.
The monthly producer price index from Germany, Europe’s biggest economy hit the market during the opening of the European session this morning at 1.5% which was almost double the figure of 0,8% that analysts were expecting while the yearly figure was equally impressive coming in at 12% against expectations for a number of 12.2%.
We saw the same situation last Friday as well where the Euro was unable to take advantage of disappointing data from America after the US University of Michigan Consumer Sentiment came in at 71 in September versus 70.3 in the previous month, and below analysts’ expectations for a figure of 72.2.
With no further important economic news due out from the US or the Eurozone today, any gains in the Euro may be limited and the chances of the currency drifting lower against the greenback remains a high possibility.
The main driver of the EUR/USD currency pair this week will be the latest interest rate decision and monetary policy statement from the US Federal Reserve where rates are expected to remain on hold.
The following monetary statement will be the talking point as investors look for signs on when the central bank plans to taper its $120 billion/month bond-buying scheme and currently analysts are divided over the timing of when this may happen.
After breaking through the $1.1800 mark, the Euro ran into stiff resistance and has suffered heavy losses for the last 3 days and is now pushing down towards the next support level of $1.1696.
A break down through this critical mark will see the next support level of $1.1673 come into focus will have the EUR/USD currency pair reaching lows that haven’t been seen in nearly 12 months.