The Euro is falling. Overview for 06.05.2020
The major currency pair remains under pressure; it is trading towards its weekly lows.
EURUSD continues losing weight and falling on Wednesday. The current quote for the instrument is 1.0816.
Today’s statistics published by the Euro Area showed that the Retail Sales in the region lost 11.2% m/m in March, the same as expected, after adding 0.6% m/m the month before. Everything is quite logical: in March, European countries started closing borders and apply quarantine restrictions to most of their population, thus reducing people’s opportunities, while the “lion’s share” of shopping was done in the food segment.
The April reading will clearly be even worse and the indicator may lose up to 15-17% m/m. The first signs of stability may be seen not earlier than June or July.
The Factory Orders in Germany lost 15.6% m/m in March and decreasing 1.2% m/m in the previous months and against the expected reading of -10.0% m/m. The German Services PMI showed 16.2 points in April after being 15.9 points in March. The same indicator for the Euro Area was 12 points, which is a bit better than the preliminary reading.
If one looks through a broader lens, it can be seen that all European statistics are rather shaky and have an obvious potential for further decline, thus putting additional pressure on the European currency.