Euro Falls After Eurozone PMI
May 04 2015 - 05:41AM
RTTF2
The euro weakened against the other major currencies in the
early European session on Monday, after German and Eurozone
manufacturing sector growth slowed down in April.
Data from Markit showed that the Eurozone manufacturing sector
expanded slightly more than initially estimated in April. The
Purchasing Managers' Index fell to 52 in April from 52.2 in March.
It was above the flash score of 51.9.
The Germany's manufacturing PMI dropped to 52.1 in April from a
11-month high of 52.8 seen in March. But it was above the flash
score of 51.9. The sector extended the current period of continuous
growth to five months.
On the other hand, the French manufacturing PMI declined more
than initially estimated in April. The index dropped to 48 from
48.8 in March. The flash score was 48.4. The latest reading pointed
to an acceleration in the rate of deterioration.
Also, data from the think tank Sentix showed that Eurozone
investor confidence weakened slightly in May. The investor
confidence index fell to 19.6 from 20 in April, which was the
highest score since August 2007. It was forecast to drop to 19.3.
The expectations measure also fell to 26.5 in May from 31.5, the
highest level since February 2006.
In the European bond market, the bond prices fell as yield rose
followed by the European Central Bank's last month €60 billion
bond-buying stimulus. In the Asian session today, the euro held
steady against its major rivals.
In the European trading today, the euro fell to 4-day lows of
1.1135 against the U.S. dollar and 133.77 against the yen, from
early highs of 1.1223 and 134.71, respectively. If the euro extends
its downtrend, it is likely to find support around 1.08 against the
greenback and 131.50 against the yen.
Against the Swiss franc, the euro edged down to 1.0443 from an
early high of 1.0479. This may be compared to an early 4-day low of
1.0439. The euro may test support near the 1.02 region.
Moving away from an early 2-month high of 1.4902 against the NZ
dollar, the euro slipped to 1.4779. On the downside, 1.43 is seen
as the next support level for the euro.
Against the Australia and the Canadian dollars, the euro dropped
to 1.4222 and 1.3540, respectively. The euro is likely to find
support around the 1.31 area.
The euro edged down to 0.7351 against the pound, from an early
high of 0.7396. The next possible downside target for the euro is
seen at 0.70 level.
Looking ahead, U.S. factory orders data for March is slated for
release in the New York session.
At 12:25 pm ET, U.S. Federal Reserve Bank of Chicago President
Charles Evans is expected to speak about current economic
conditions and monetary policy at the Columbus Economic Development
Board's Annual Meeting in Indiana.
Subsequently, U.S. Federal Reserve Bank of San Francisco
President John Williams is expected to speak on "Creating Jobs and
Economic Opportunity through Small Business" before the Pacific
Community Ventures Luncheon in San Francisco at 3:10 pm ET.
U.K. banks will be closed in observance of the Early May Bank
holiday. The banks of Japan will be also closed in observance of
Greenery Day holidays.
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