Forex - EUR/USD gains as European manufacturing gauge surprises
Published Jul 01, 2013 11:55AM ET
In U.S. trading on Monday, EUR/USD was up 0.37% at 1.3058, up from a session low of 1.3006 and off from a high of 1.3061.
The pair was likely to find support at 1.2992, Friday's low, and resistance at 1.3103, Friday's high.
U.K.-based Markit's final euro zone purchasing managers' index hit a 16-month high of 48.8 in June, beating market calls for a 48.7 reading.
Spain’s manufacturing PMI rose to 50.0 in June, the highest level in two years, up from 48.1 in May and above expectations for a 48.5 reading.
France’s manufacturing PMI came in at 48.4 compared to market calls for 48.3, but Germany’s manufacturing PMI came in at 48.6, missing expectations for a 48.7 reading, which gave the euro added support.
Elsewhere, official data revealed that the euro zone's unemployment rate hit 12.1% in May from 12.0% in April, slightly lower than expectations for a 12.3% reading.
The euro zone's consumer price index rose to 1.6% in June from 1.4% in May, in line with expectations.
Across the Atlantic, manufacturing output is on the rise in the U.S. as well.
The Institute for Supply Management said its manufacturing purchasing managers’ index rose to 50.9 from 49.0 in May, above expectations for a reading of 50.5.
However, the report added that the employment index declined to 48.7 from 50.1 in May, falling below the 50 level that separates contraction from growth for the first time since September 2009.
The numbers frayed nerves somewhat ahead of the release of Friday’s U.S. nonfarm payrolls data, which could provide the market with a weather vane as to when the Federal Reserve begins to taper its USD85 billion-a-month asset purchasing program, which weakens the greenback to spur recovery.
The euro, meanwhile, was up against the pound and up against the yen, with EUR/GBP trading up 0.12% at 0.8565 and EUR/JPY trading up 0.85% at 130.11.
On Tuesday in the euro zone, Spain is to release official data on the change in the number of people unemployed.
The U.S. is to release official data on factory orders, a leading indicator of production.
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Written By: Investing.com
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