According to the results of the recent survey conducted by Markit Economics, the preliminary PMI data for the Eurozone indicate a decline from 53,6 points all the way down to 52.7 points over the reporting period. As for the year-over-year dynamics, the index is reported to have reached a major low, Market Leader reports.
More specifically, the Eurozone’s Services PMI also dropped from 53.6 points down to 53 points in February 2016. This is a new 13-month low. Germany, which is the Eurozone’s biggest economy, seems to have contributed a lot to this slowdown. It is reported that Germany’s Composite PMI declined from 54.5 points in January down to 53.5 points in February.
As for the German Services PMI, it suddenly showed some growth from 55 points up to 55.1 points over the same reporting period. The index came out much better than expected since experts had anticipated a drop down to 54.7 points. The Manufacturing PMI dropped down to the lowest point since November 2014, when it was 50.2 points as opposed to 52.3 points seen in January 2016.
FOREX
In the meantime, Masterforex-V Academy reports that the common European currency is moving down again along the long-term downtrend versus the U.S. Dollar after showing some recovery. At this point, the price is moving somewhere around 1.1005 and has come close to a major level of support represented by the bottom of the ascending MF sloping channel. On breaking and consolidating below it, the price will get a chance to head for further lows including the next major level of support located at 1,0815. Alternatively, the closest major level of resistance is located at 1,1375.
