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EUR/USD Forecast: Risk-off flows to start the week

Euro slips as German industrial production declines

German Industrial Production declines for fourth straight month The euro has started the week with losses. In the European session, EUR/USD is trading at 1.0

Euro Slips as German Industrial Production Declines

German industrial production declined in August by 0.2%, following a revised -0.6% reading in July and shy of the consensus estimate of -0.1%. This marked a fourth straight decline, pointing to a prolonged slump in the production sector. There was some good news last week as factory orders rose 3.9% in August, but the outlook remains difficult. The manufacturing sector has been stuck in a downturn, with the September Manufacturing PMI coming in at 39.6, which indicates a sharp contraction (the 50 level separates contraction from expansion).

EUR/USD Forecast: Bullish bias while above 1 0530

The EUR/USD rose during the American session but held below Friday's close. The weakness of the US Dollar was not sufficient to push the pair above 1.

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