Euro Under Pressure as German Data Signals Recession – BNY
BNY strategist Bob Savage notes that Euro area Sentix sentiment remains in contraction territory, with Germany still classified as recessionary. German manufacturing orders plunged in April, led by autos and machinery, despite a slight improvement in sales.
BNY's Bob Savage points to a mixed macro backdrop for the euro, with the latest Sentix investor sentiment still deep in downturn territory. Germany is officially considered to be in recession, though there has been a modest improvement from previous lows.
German manufacturing orders suffered a sharp decline in April, with the weakness concentrated in the automotive and machinery sectors. While sales showed some positive signs, the overall data reinforces the negative bias for the euro.
The combination of persistent recessionary conditions in the Eurozone's largest economy and weak industrial demand weighs on the single currency outlook.
Source: FXStreet Forex News