Investing.com - The euro was broadly lower against its major counterparts on Tuesday, as fresh concerns over the situation in Spain and a flurry of disappointing euro zone data overshadowed hopes for a breakthrough in tackling the debt crisis in the region.
During European late morning trade, the euro gave up early gains against the U.S. dollar, with EUR/USD shedding 0.51% to hit 1.2434.
The euro weakened broadly after Spain’s Treasury Minister Cristobal Montoro said that financial markets were effectively closed to Spain because of the current high level of the country’s borrowing costs.
Meanwhile, revised data showed that the euro zone's services sector contracted at a slightly slower rate than initially expected in May, but still shrank at the fastest pace since June 2009.
The final euro zone services sector index posted a reading of 46.7 in May, up from a preliminary estimate of 46.5, but still below the key 50 level.
In Germany official data showed that factory orders dropped 1.9% in April, compared to expectations for a 1% decline, fanning concerns over the impact of the ongoing sovereign debt crisis on the region’s largest economy.
Another report showed that euro zone retail sales dropped 1% in April, disappointing expectations for a more modest 0.1% decline.
Investor sentiment had improved earlier, ahead of a teleconference of finance ministers from the Group of Seven industrialized nations later Tuesday, to discuss the crisis roiling the euro area.
Elsewhere, the single currency was down against the yen, re-approaching last Friday’s eleven-and-a-half-year low, with EUR/JPY falling 0.68% to hit 97.24.
The euro was lower against the pound, with EUR/GBP shedding 0.35% to hit 0.8094, but remained steady against the Swiss franc, with EUR/CHF inching up 0.01% to hit 1.2010.
Markets in the U.K. were to remain closed on Tuesday for a second day for the Queen’s jubilee.
The euro was also weaker against the Canadian, Australian and New Zealand dollars, with EUR/CAD shedding 0.44% to hit 1.2931, EUR/AUD dropping 0.63% to hit 1.2768 and EUR/NZD losing 0.16% to hit 1.6492.
Earlier in the day, the Reserve Bank of Australia lowered its benchmark interest rate by 0.25% to 3.50%, the lowest level since October 2009, saying that recent indicators suggested "further weakening in Europe and some further moderation in growth in China".
Later Tuesday, the Institute for Supply Management was to release a report on U.S. service sector activity.
During European late morning trade, the euro gave up early gains against the U.S. dollar, with EUR/USD shedding 0.51% to hit 1.2434.
The euro weakened broadly after Spain’s Treasury Minister Cristobal Montoro said that financial markets were effectively closed to Spain because of the current high level of the country’s borrowing costs.
Meanwhile, revised data showed that the euro zone's services sector contracted at a slightly slower rate than initially expected in May, but still shrank at the fastest pace since June 2009.
The final euro zone services sector index posted a reading of 46.7 in May, up from a preliminary estimate of 46.5, but still below the key 50 level.
In Germany official data showed that factory orders dropped 1.9% in April, compared to expectations for a 1% decline, fanning concerns over the impact of the ongoing sovereign debt crisis on the region’s largest economy.
Another report showed that euro zone retail sales dropped 1% in April, disappointing expectations for a more modest 0.1% decline.
Investor sentiment had improved earlier, ahead of a teleconference of finance ministers from the Group of Seven industrialized nations later Tuesday, to discuss the crisis roiling the euro area.
Elsewhere, the single currency was down against the yen, re-approaching last Friday’s eleven-and-a-half-year low, with EUR/JPY falling 0.68% to hit 97.24.
The euro was lower against the pound, with EUR/GBP shedding 0.35% to hit 0.8094, but remained steady against the Swiss franc, with EUR/CHF inching up 0.01% to hit 1.2010.
Markets in the U.K. were to remain closed on Tuesday for a second day for the Queen’s jubilee.
The euro was also weaker against the Canadian, Australian and New Zealand dollars, with EUR/CAD shedding 0.44% to hit 1.2931, EUR/AUD dropping 0.63% to hit 1.2768 and EUR/NZD losing 0.16% to hit 1.6492.
Earlier in the day, the Reserve Bank of Australia lowered its benchmark interest rate by 0.25% to 3.50%, the lowest level since October 2009, saying that recent indicators suggested "further weakening in Europe and some further moderation in growth in China".
Later Tuesday, the Institute for Supply Management was to release a report on U.S. service sector activity.