EUR/USD falls below the April 11 low
The euro has stumbled for the second day and is now down 60 pips to a session low of 1.2287.
In the short-term, the move is about a stronger dollar. Higher Treasury yields have been the story late in the week and that’s helped to underpin the dollar.
In the bigger picture, eurozone economic data is a problem for the euro. The calendar was light today but German PPI was at 1.9% versus 2.0% expected. None of this is going to stop the ECB from normalizing but it’s increasingly looking like a long wait before rates start to move higher.
On the chart, there isn’t much happening. The consolidation in the 1.22-1.25 range continues. Naturally, the downside looks a bit more appetizing at this point but the way to trade a break is to wait for a break.