As was expected, German economic data did add instability to the international markets as a whole and to EUR/USD in particular. Of course traders were forced to sell euro off in anticipation of the report, but that is nothing compared to what happened when the actual data came out. And what happened is perfectly suited in the general behavioral guidelines of the couple, no more, no less.

For the last several month euro has been on a dead-on downtrend. All due to the weak anticipations from the European currency that we have been having. Last time when Germany released their economic data, the same thing happened – euro was turbulent for several days in a row and now that we have a possibility to look back at it, we see that euro never recovered from the impact and that there are still wounds. Plus, the fact that German PMI – the report that we were waiting for today – came out with the lowest numbers in 7 years is not really helping the situation. Despite the fact that some segments of German economy are still booming, it is obviously not enough in order to keep in perfectly afloat.

That what has become the reason for euro sinking against the greenback today and what can become the reason for the further declines in the performance of united European currency.

Use your trading signals in this harsh time.