Euro’s April Rally Brings May Doubts About State of the Economy

After staging the biggest rally in almost five years, euro bulls are reassessing the health of the region’s economy.

The common currency dropped versus all but one of its major peers after a purchasing managers index for manufacturing dropped in April. While euro-area consumer prices ended a four-month streak of declines last month, inflation is still stuck at zero. The euro also failed again to breach two key levels watched by those who study chart patterns, hindering its advance.