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EUR Falters on PMIs, German Retail Sales

FOREX

The EUR is among the poorest performers in G10 early Monday, with the USD gaining after a series of disappointing data releases from the Eurozone. Firstly, German retail sales saw a considerable miss, with December sales falling to -9.6% vs. Exp. -2.0%, which also saw the November release revised lower. This was followed up by a miss of forecast for PMI Numbers from Spain, which saw some further weight go through.

EUR/USD pullback is yet to test the next key support level, which today crosses at the Jan18 low of 1.2054.

Elsewhere, GBP trades well, with EURGBP hitting new 2021 lows this morning of 0.8805. This marks the lowest level for the cross since May 2020.

CHF is the poorest performer in G10, with EUR not far behind. USD and GBP are among the strongest.

Focus turns to ISM data later today, with markets seeing Manufacturing ISM broadly inline with the prior month at 60.0. Speeches are also due from Fed's Kashkari, Kaplan and Bostic.

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