🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

EUR/USD down mildly, amid poor economic data on both sides of Atlantic

Published 10/05/2015, 05:15 PM
Updated 10/05/2015, 05:21 PM
The euro fell nearly 0.25% on Monday to close below 1.12
EUR/USD
-
DX
-

Investing.com -- EUR/USD fell mildly on Monday to halt a three-day winning streak, amid disappointing service sector data on both sides of the Atlantic.

The currency pair traded between a low of 1.1174 and a high of 1.1289 before settling at 1.1185, down 0.0026 or 0.24% on the session. Previously, the euro closed higher against the dollar in six of the last eight sessions and eight of the last 10. Still, the euro is relatively flat versus its American counterpart over the last month of trading, up by roughly 0.37% during that span.

EUR/USD likely gained support at 1.1086, the low from September 3 and was met with resistance at 1.1442, the high from Sept. 17.

The Institute of Supply Management reported on Monday morning that its non-manufacturing purchasing index dipped to 56.9 in September from a level of 59.0 the previous month. It also fell below consensus estimates of a 58.0 reading. Following two consecutive months of stellar reports over the summer, the September report was dragged down by weakness in business activity and new orders. In July, the index surged to a 59.6 level, its strongest reading in 18 years.

Separately, there are signs that growth in the services sector is decelerating after the Services Purchasing Managers' Index fell to 55.1 last month, below consensus expectations of a 55.8 reading. Within the report, there were signs of weakness in growth in new orders and production overall.

In addition, the daily spending habits of Americans were virtually unchanged last month according to Gallup's U.S. Consumer Spending Measure for September. During the month, American consumers averaged about $88 per day, just below an $89 average in August.

On Friday morning, the U.S. Department of Labor's Bureau of Labor Statistics said non-farm payrolls for the month of September increased by 142,000, significantly below consensus estimates from analysts of a 203,000 gain. The figure also fell well below low end of estimates of a 180,000 increase. The unemployment rate remained steady at 5.1%, while the labor participation rate declined by 0.2% to 62.4%.

In Europe, the euro zone services PMI in September slumped to a seven-month low at 53.7 slightly below analysts' forecasts for a reading of 54.0. Euro zone employment, meanwhile, moved higher for the 11th straight month, amid solid increases in Germany, Spain and Ireland. European Commission head Pierre Moscovici, however, issued a warning to Spain on Monday after he said projections show the nation could miss its headline fiscal targets in both 2015 and 2016.

The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other currencies, gained more than 0.25% to an intraday high of 96.29 before closing at 96.20 on Monday's session. The index rose by 0.19% for its third win in the last five sessions.

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.