October 1, 2019, | AtoZ Markets – The EURUSD pair is getting bearish with the pair testing fresh 2019 lows in the 1.0880 level. It is the worst quarterly loss since early 2018. Also, the pair reported a drop in the second session in a row on Tuesday, keeping the bearish stance intact particularly after the recent break below the key support at 1.09 level.
Key reasons for Euro slowdown
One of the key reason for EURUSD break is the German flash inflation figures for September. This came in short of expectations, showing further evidence of the loss of upside traction of consumer prices in the economy.
Later in the day, final September manufacturing PMIs are due in Europe. The major focus will be on the advanced CPI for the region during the same period.
EURUSD breaks to new 2-year lows to 1.0880/75 band earlier in the session as the investors’ sentiment sour. The sign of positive Euro momentum is less in the short term. As per the latest PMIs in the Eurozone and the improvement in a couple of German sentiment gauges.
The slowdown in the Eurozone economy does nothing but justify the loss for longer monetary stance by the European Commission Board (ECB). On the other hand, the potential US traffics on the imports on EU automobiles remains the main concern for Europe as Germany is the largest manufacturer of automobile. Also, Brexit and UK politics adds additional concerns for the Euro.