EUR/USD Hits Yearly Lows Amid Eurozone Data Confusion
The EUR/USD pair has been trading around $1.1349 on September 29 and remains under strong pressure, testing this year's lows.
The technical picture for the pair has deteriorated noticeably, with a sequence of lower local highs intact and recovery attempts met with selling.
Fundamental factors in the eurozone are sending mixed signals. Business activity accelerated in September, but European Commission data were weaker, with the economic sentiment index falling to 97.9 from 98.4 and consumer confidence declining to -16.5.
The divergence between Germany and France is becoming more important for the euro, with German surveys improving while domestic demand in France remains weak. The yield on 10-year Bunds stands around 3.61% on September 29, while European rates remain elevated due to the energy shock and inflation risks.