TD Research highlights a tactical bearish bias on EUR/USD and EUR/JPY in the near-term.
"The main EZ economies reported a dismal set of “flash” PMI reports today. The woes of the German manufacturing sector deepened while evidence of a broader slowdown is growing. This keeps the EUR under pressure and we think EURUSD looks increasingly likely to test key support around 1.0925 ," TD notes.
"EURJPY continues to make a lot of sense and charts suggest lower prices are likely. Micro positives from tariﬀ free soy bean purchases should be outweighed by the noon of a “full” trade deal which covers IP etc and will be much harder to achieve and should keep JPY on the front foot," TD adds.