Euro tumbles on disappointing Eurozone flash PMIs, economic activity contraction

June 23, 2023 01:54 AM PDT | By Invezz

Euro tumbles on disappointing Eurozone flash PMIs, economic activity contraction — Image source: Invezz

Euro was sold across the board

Traders did not waste time and sold the common currency immediately. As such, the EUR/USD exchange rate dropped by about 1%.

Similar market moves were seen on the EUR/JPY pair, while other crosses dropped by half a percentage point.

But the day is still young.

With no important economic data for the rest of the trading week and next week being the last one in June, the euro may have more room to fall.

EUR/USD, in particular, looks vulnerable.

The European Central Bank vowed to raise the interest rates again in July, but with such poor economic data, it may have to think twice before acting. As such, some traders will pare their bets on another interest rate hike, which may add fuel to the fire and trigger another wave of selling in the euro pairs.

The post Euro tumbles on disappointing Eurozone flash PMIs, economic activity contraction appeared first on Invezz.

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