Investing.com - The euro was marginally lower against the pound on Thursday, as dismal euro zone PMI data renewed concerns over the impact of the region’s debt crisis on the economy, but the pound remained under pressure after data showed that the recession in the U.K. was deeper than initially estimated.
EUR/GBP hit 0.8001 during European morning trade, the session low; the pair subsequently consolidated at 0.8010, dipping 0.09%.
The pair was likely to find support at 0.7962, the low of May 14 and an almost three-and-a-half year low and resistance at 0.8045, the high of May 17.
The euro weakened broadly after data showed that manufacturing activity in the euro area contracted at the fastest pace since June 2009 in May, while service sector activity shrank at the steepest pace in seven months.
Germany manufacturing activity slowed to the lowest level in almost three years in May, sparking fresh fears over the impact of the euro zone debt crisis on the region’s largest economy.
A separate report showed that the German Ifo business climate index deteriorated significantly more-than-expected in May, pressured lower by uncertainty in the euro zone.
Market participants also remained risk adverse after Wednesday’s summit of European Union leaders made little signs of progress in tackling the debt crisis in the region.
Leaders reiterated that they want Greece to remain in the euro area, but urged the country to honor its commitments to austerity measures and the reforms demanded under its bailout program.
But the euro remained supported against sterling after U.K. data showed that the economy shrank more than initially estimated in the first three months of 2012, driven by the sharpest quarterly contraction in construction since the first quarter of 2009.
The Office for National Statistics said gross domestic product contracted at a seasonally adjusted rate of 0.3% during the first quarter, compared to preliminary estimate of 0.2%.
Analysts expected U.K. GDP to remain unchanged from the preliminary estimate.
The euro was hovering within striking distance of a 22-month low against the U.S. dollar, with EUR/USD slipping 0.10% to hit 1.2568.
Later Thursday, the U.S. was to release official data on core durable goods orders and initial jobless claims.
EUR/GBP hit 0.8001 during European morning trade, the session low; the pair subsequently consolidated at 0.8010, dipping 0.09%.
The pair was likely to find support at 0.7962, the low of May 14 and an almost three-and-a-half year low and resistance at 0.8045, the high of May 17.
The euro weakened broadly after data showed that manufacturing activity in the euro area contracted at the fastest pace since June 2009 in May, while service sector activity shrank at the steepest pace in seven months.
Germany manufacturing activity slowed to the lowest level in almost three years in May, sparking fresh fears over the impact of the euro zone debt crisis on the region’s largest economy.
A separate report showed that the German Ifo business climate index deteriorated significantly more-than-expected in May, pressured lower by uncertainty in the euro zone.
Market participants also remained risk adverse after Wednesday’s summit of European Union leaders made little signs of progress in tackling the debt crisis in the region.
Leaders reiterated that they want Greece to remain in the euro area, but urged the country to honor its commitments to austerity measures and the reforms demanded under its bailout program.
But the euro remained supported against sterling after U.K. data showed that the economy shrank more than initially estimated in the first three months of 2012, driven by the sharpest quarterly contraction in construction since the first quarter of 2009.
The Office for National Statistics said gross domestic product contracted at a seasonally adjusted rate of 0.3% during the first quarter, compared to preliminary estimate of 0.2%.
Analysts expected U.K. GDP to remain unchanged from the preliminary estimate.
The euro was hovering within striking distance of a 22-month low against the U.S. dollar, with EUR/USD slipping 0.10% to hit 1.2568.
Later Thursday, the U.S. was to release official data on core durable goods orders and initial jobless claims.