Early weakness seen in EUR/USD
We have seen some early weakness developing in EUR/USD and this is coinciding with the early release of German factory orders for November, which has recorded a 1.3% fall compared to expectations of a steady 0.2% rise on the month. While the newswires dominate focus with events in the Middle East, traders will still keep an eye out for the data coming out of the Eurozone, and while this may not be a dominant factor in price action, it does serve as an underlying consideration when markets stabilise.
Even though the PMIs for manufacturing managed to show some stability in the latest readings, they remain rooted deep in contractionary territory, so unless there are clear signs that activity in the region is improving, EUR gains will all be down to external factors with risk-off having a mixed impact as traders assess their outlook on the USD first and foremost.
At present, we are seeing the mid to low 1.1100's providing the latest round of support, so any move below here may be taken as a signal that we could test lower again, but markets can turn in an instant in the current climate, so conviction here - and in most other currency pairs - will be hard to maintain in the current climate.