The pound continues to record a new 37-year low at the 1.10250 level.
German private sector activity worsened more than expected in August.
EURUSD chart analysis
During the Asian session, the euro managed to maintain itself around the 0.98500 level. The pressure was too great, and we saw everything fall below the 0.98000 level. The euro did not stop there, and the pair slipped even lower to the 0.97330 level. Currently, we see a minor recovery of the euro above the 0.97500 level, and it could rise again to the 0.98000 level. For a bullish option, we need a breakout and try to hold there. We need a new positive consolidation to move us to this morning’s high at the 0.98500 level. Additional resistance at that point is in the MA50 moving average. We need a negative consolidation and a return below the 0.97500 level for a bearish option. Potential lower targets are 0.97000 and 0.96500 levels.
GBPUSD chart analysis
The pound continues to record a new 37-year low at the 1.10250 level. And now we are very close to the 1.10000 level. The pressure on the pound is enormous. Inflation is not decreasing, and estimates are that it will continue to rise until the end of the year. The BOE raised its interest rate from 1.75% to 2.25%, but for now, everything is going in the opposite direction, increasing inflation. We have current support on the chart, and we must stabilize above the 1.11000 level if we plan to recover. Then we need a positive consolidation to the 1.12000 level to return to a safer support zone. We need a continuation of the negative consolidation and a drop to the 1.10000 level for a bearish option. A break below would form new multi-decade low, and potential targets are 1.09950 and 1.09900 levels.
German private sector activity worsened more than expected in August. The private sector recorded its worst performance in more than two years with persistently high inflation, economic uncertainty, and increased energy costs. The composite output index fell to a 28-month low of 45.9 in September from 46.9 in August. Both the service and manufacturing sectors recorded a decline in September. The Services Purchasing Managers’ Index fell to a 28-month low of 45.4 in September from 47.7 the previous month.
Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. If you are interested in following the latest news on the topic, please follow Finance Brokerage on Google News.