Euro Loses Bullish Momentum
(eToro Blog) Following the massive liquidity injections from the Eurozone and the U.S., analysts had expected that the Euro’s uptrend was likely to continue provided that there were no headwinds which impeded its momentum. However; those headwinds came in fast and furious in the form of PMI readings from the Eurozone, which were released yesterday. China’s lackluster PMI data which had been released earlier in the day should have been the tipoff to investors to be wary.
September’s PMI services sector and manufacturing data for Germany was the only bright spot in the Eurozone; France’s PMI moved markedly lower into contractionary territory. For the whole of the Eurozone, though there was some improvement in the manufacturing reading which edged to 46.0 from 45.1, it was more than offset by soft services data which resulted in a lower than expected reading for the composite PMI.
With no key data releases scheduled today, the Euro is likely to be weighed down by the bearish sentiment. Currently, the EUR/USD pair is trading at $1.2990, coming off this week’s low of $1.2920 which was hit yesterday and far from Monday’s high of $1.3173. On OpenBook sentiment for the EUR/USD is primarily bearish, with 59% of traders selling against 41% buying. OpenBook guru UKTrader from the U.K. captured 10.00% and 18.25% gains on a pair of short positions in the EUR/USD pair. The guru, who has 114 copiers and 2502 followers, has realized equity of 47.9% in the past month, and 23% in the past quarter.
OpenBook guru Noe17 from France also managed to turn a profit on a short position in the pair, earning 6.50% on one trade. The guru has 2981 followers and 141 copiers, and has allocated nearly 35% of the portfolio to the pair for a gain of 7.8% over the past six months. The guru has realized equity of 4.7% for the past week and 24.3% for the past month, and though negative equity at the quarter and 6-month levels, realized equity improves to more than 300% for the last 12-months.
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