Forex - Euro off lows after euro zone PMI data
Investing.com
Published Jul 24, 2014 04:39AM ET
Euro off lows after euro zone PMI data
Investing.com - The euro recovered from eight month lows against the dollar on Thursday after private sector data indicated that economic growth in the euro zone rebounded in July.
EUR/USD edged up 0.07% to 1.3471, from around 1.3438 ahead of the data, the weakest since November 21.
The pair was likely to find support at around the 1.3400 level and resistance at 1.3500.
The euro found support after a report showed that the preliminary reading of the euro zone manufacturing purchasing managers’ index rose to a two-month high of 51.9 from 51.8 in June.
The bloc’s services PMI jumped to a 38-month high of 54.4 from 52.8 in June.
The German manufacturing PMI rose to 52.9, up from 52.0 last month and the service PMI rose to a 37 month high of 56.6 from 54.6 in June.
The French manufacturing PMI fell to a seven month low of 47.6 from 48.2 in June but the country’s services PMI rose into positive territory, climbing to 50.4 from 48.2 in June.
The euro remained under pressure amid concerns that a fresh round of sanctions against Russia could have a negative impact on the growth outlook for the region.
The diverging monetary policy path between the European Central Bank and other central banks has also weighed on the single currency since the ECB cut rates to record lows on June 5, in a bid to stave off the threat of deflation in the euro area.
In contrast, Federal Reserve Chair Janet Yellen indicated last week that interest rates may rise sooner if the recovery in the labor market continued.
Against the yen, the euro edged higher, with EUR/JPY easing up 0.10% to 136.76, off the five month low of 136.37 struck earlier in the session.
The single currency also moved higher against the pound, with EUR/GBP rising 0.28% to 0.7922, pulling back from Wednesday’s 22 month lows of 0.7873.
Sterling weakened after data on Thursday showed that U.K. retail sales rose less than expected in June.
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Written By: Investing.com
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