EUR/GBP drops back to test 0.8500 following crummy German PMI data

The impact of the fall in the EUR/USD after the German PMI data has helped the EUR/GBP fall to a new low on the week as it approaches the 0.8500 handle. That level has held for now, as the EUR/USD steadies a little bit more above 1.1125. The Euro is pretty resilient right now versus the dollar, because if it was not, that fall probably would have extended beyond 1.1125 after such crummy German data and it seems likely that it will not ultimately shift the positive trend in the EUR/USD. However, we shall have to see what the equivalent US PMI numbers this afternoon have to add to say on that. Meantime, the Pound is still in a good position, but do not forget that we also get the UK PMI data out at 8.30am GMT. That could decide, if that 0.8500 handle on the EUR/GBP remains intact from here on today. The low seen so far has been set at 0.8502. It is currently trading at 0.8508