Expect sellers on pullbacks
The PMI numbers today are really poor and that is going to be weighing on EUR sentiment for the rest of the day. Germany’s 41.4 manufacturing level is, according to Markit, “the sharpest decline in business conditions across the goods-producing sector since the depths of the global financial crisis in mid-2009”. Markit also noted that at current trajectory, “Germany may not see any growth before year-end”
The JPY has strengthened on the back of the weak PMI data amidst falling European equities. The Dax has extended its earlier falls and is down -1.62%.
Expect EURJPY sellers on pullback as long as risk sentiment remains this way. e.g. a positive trade tweet from Trump would weaken JPY.