The euro for a week remains under pressure on global markets, due to weak economic indicators. As a result, the pair declined from the EURUSD high near 1.1450 to 1.1220 – the lows area since June 2017. An attempt to break the downtrend failed with the help of Draghi. ECB President Mario Draghi warned of a possible extension of the extremely low rates period.
Additionally, the EUR decline on Thursday was aggravated by weak inflation data from Germany. The annual price growth rate of the region’s largest economy slowed down to 1.3%, the minimum in 16 months. More importantly, the tendency to weaken price pressure is clearly an unpleasant surprise, disarming monetary policy hawks.
Weak data is a significant factor against the euro, opening the way for the decline. As for technical analysis, EURUSD can easily decline down to 1.06, where the pair received support in late 2016 and early 2017.
Alexander Kuptsikevich, the FxPro analyst