Eurozone and US PMI data fell to its lowest levels since June 2020 and August 2020 respectively, indicating a significant slowdown in both economies. However, EUR/USD has still seen losses accelerate in recent days as the Dollar catches a bid on safe-haven flows.
Poor risk appetite has also seen some traders move back into the Yen, causing EUR/JPY to break its uptrend at the end of last month despite the ECB’s hawkish pivot relative to a persistently dovish BOJ.
This could potentially open the door to a larger move lower for the pair, although the pair still needs to break a confluence of support just below 137.
All trading carries risk, but it will be interesting to see whether EUR/JPY can bounce from here, or if risk-adverse flows on intensifying recession fears continues to drag the pair lower.
Poor risk appetite has also seen some traders move back into the Yen, causing EUR/JPY to break its uptrend at the end of last month despite the ECB’s hawkish pivot relative to a persistently dovish BOJ.
This could potentially open the door to a larger move lower for the pair, although the pair still needs to break a confluence of support just below 137.
All trading carries risk, but it will be interesting to see whether EUR/JPY can bounce from here, or if risk-adverse flows on intensifying recession fears continues to drag the pair lower.