German economic sentiment index slumped to 8.7. The mid-point forecast was 21.5.
Bundesbank, the central bank of Germany, said it does not expect acceleration of economic growth in the 1st quarter.
The reason for that is the negative impact of China's coronavirus. Germany is an export-oriented economy which has large supply deliveries to China. The country produces a significant amount of parts in China as well.
Weak economic data had a negative impact on the euro. The euro is expected to pull back again.
EUR/USD: buy deals are from 1.0990. The stop level is better to be placed at the breakeven point.
In case of rebound, buying deals are from 1.0880 and higher.
The target is 1.0600.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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