Markit's purchasing managers' index for the manufacturing sector came out at 44.5 points in the preliminary read for April, below 45 expected and only barely above 44.1 seen in March. The figures represent a deep and ongoing contraction in the locomotive of the euro-zone.
EUR/USD fell out of the tight trading range and falls below 1.1270. Support awaits at 1.1250 and 1.1210 and resistance is at 1.1330.
Here is how the move looks on the 15-minute chart:
Germany barely avoided a recession after the economy remained flat in Q4 and suffered a contraction in Q3.
The services sector had a better score of 55.6 points, above 55.1 expected. Nevertheless, Germany's industry is export-oriented. These exports prop up the euro zone's trade surplus and keep the common currency bid against the US Dollar.
The euro-zone PMI is due next.
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