The Euro made fresh six month lows through trade on Wednesday as data showed the Euro area continues to suffer softness across broader macroeconomic indicators. Manufacturing and service sector business conditions, in particular, softened through the month to date, compounding slowdowns across other vital economic markers and exacerbating expectations that monetary policy will remain accommodative well into 2019.
The Euro broke below the 1.17 handle to touch 1.1679 as the ongoing uncertainties that surround the Italian election and collation formation continue to weigh on the currency too. Concerns the new government will push for ECB debt forgiveness, as well as some proposed fiscal policies, will put pressure on an already stretched fiscal deficit.
ECB monetary policy meeting minutes are released later today and will be the primary focus for euro traders. You can only think the central bank will be dovish, so anything less dovish than expected could well be supportive of the single currency, especially in light of its recent and aggressive sell-off.