Will Euro Close Above the Level of 1.12 ?

Statistics show Germanys manufacturing PMI in December reached 43.4, less than the expected 44.6. Overall, manufacturing PMI of the whole Eurozone sat at 45.9, a decrease from the previous 46.9 and lower than the expected 47.3. The protest that broke out in France recently is also worrying.

Throughout 2019, the global banking industry have experienced a significant slump as several major banks, especially those in Europe, launched laid-off campaigns. Eurozone economy continue to struggle, which made investors concerned. All these indicate activities of Eurozones manufacturing and service sector are again slowing down. Fitch, an international rating agency, recently issued a report warning that the Eurozone is falling into a vicious cycle of low growth and high debt, which may trigger a series of downgrades of government bonds.

From a technical perspective for EUR/USD, whether the weekly moving average will close above the 1.12 level will be critical. If not, the euros down-slope trend may continue.