German economic fears pressure Dax, Euro
The Dax (#DAX30) has had a negative couple of days and is now flirting with interim support a shade under 11,000. This is due to the negative economic pressure on the Eurozone (EZ), and the role of Germany within the EZ. German Industrial Output figures for December came in at an embarrassing -0.4%, against an expected rise of 0.7%. If Germany can’t pull the Eurozone up by sheer industry and work ethic who is going to step up ? With a Brexit ‘No Deal’ and the pressure seemingly getting to both President of the EU Commission Donald Tusk & Belgian EU zealot Guy Verhofstadt, both of whom were this week active on social media yesterday giving vent to some very politically unhelpful opinions, one assumes that the Germans have been rapping them across the knuckles and ordering them to stay late after class to clear up their mess. Survey data out of Germany has been weak, manufacturing PMI has contracted and EC forecasts are being hurriedly revised down, with projected EZ growth revised to +1.3% from the previous optimistic figure of +1.9%. This will hardly encourage holders of the Euro (EURUSDeither and we expect negative pressure to build on both.