Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Forex - EUR/USD extends losses after weak euro zone data

Published 10/24/2012, 04:24 AM
EUR/USD
-
EUR/GBP
-
EUR/JPY
-
Investing.com - The euro fell to a seven-day low against the U.S. dollar on Wednesday, after weak euro zone PMI data and disappointing German business confidence data weighed on demand for the single currency.

EUR/USD hit 1.2922 during European morning trade, the pair’s lowest since October 15; the pair subsequently consolidated at 1.2928, down 0.44%.

The pair was likely to find support at 1.2834, the low of October 10 and resistance at 1.2996, the session high.

Markit said that its flash euro zone manufacturing purchasing managers’ index fell 45.3 in October from a final reading of 46.1 in September.
Analysts had expected the index to ease up to 46.6 in October.

A separate report showed that the euro zone’s service’s PMI inched up to 46.2 in October from 46.1 last month.

Germany’s flash manufacturing PMI fell to 45.7 in October, from a final reading of 47.4 in September, disappointing expectations for an improvement to 48.0.

France’s flash manufacturing PMI rose to 43.5 in October, from a final reading of 42.7 in September, compared to expectations for a reading of 44.0.

Elsewhere, a report by German research institute Ifo showed that its business climate index fell to100.0 in October, the lowest level since March 2010, from a reading of 101.4 in September.

The euro had found some support earlier after a report showed that China's HSBC manufacturing PMI came in at 49.1 in October, compared with a final reading of 47.9 in September.

The euro was lower against the pound and the yen, with EUR/GBP down 0.50% to 0.8100 and EUR/JPY falling 0.62% to 103.06.

Later Wednesday, the Federal Reserve was to announce its benchmark interest rate and release its first monetary policy statement since the central bank announced a third round of quantitative easing in September. The U.S. was to release official data on new home sales.

Meanwhile, European Central Bank President Mario Draghi was to attend a meeting in Germany’s central bank, which was to be followed by a press conference.



Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.