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Euro mixed vs. rivals as growth outlook weighs

Published 04/02/2012, 06:21 AM
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Investing.com - The euro was mixed against its global counterparts on Monday, as general market sentiment improved but concerns over the outlook for the euro zone economy kept the currency’s gains in check.

During European late morning trade, the euro was slightly higher against the U.S. dollar, with EUR/USD easing up 0.14% to hit 1.3359.

Concerns that the euro zone is slipping into a recession were underlined earlier after official data showed that the unemployment rate in the region ticked up to a record high of 10.8% in February from 10.7% the previous month, broadly in line with expectations.

On Friday, euro zone finance ministers agreed to strengthen the bloc’s debt firewall, but fears remained over whether the measures would be enough to prevent contagion to Spain and Italy.

The single currency dipped against the pound, with EUR/GBP inching down 0.03% to hit 0.8327.

The pound strengthened broadly after a report showing that U.K. manufacturing activity expanded at the fastest rate in 10 months in March.

The U.K. manufacturing purchasing managers' index rose to 52.1 last month from an upwardly revised 51.5 in February, confounding analysts' expectations for a drop to 50.5.

The euro was almost unchanged against the yen and the Swiss franc, with EUR/JPY dipping 0.01% to hit 110.56 and EUR/CHF easing up 0.02% to hit 1.2042.

The yen weakened earlier after an index of sentiment at Japanese manufacturers declined more-than-expected in the first quarter, fanning concerns that the Bank of Japan may implement fresh easing measures.

In Switzerland, a report showed that manufacturing activity improved more-than-expected in March, expanding for the first time in seven months.

A separate report showed that Swiss retail sales rose less-than-expected in February.

The shared currency was broadly lower against the Canadian, Australian and New Zealand dollars, with EUR/CAD adding 0.06% to hit 1.3322, EUR/AUD shedding 0.32% to hit 1.2851 and EUR/NZD dipping 0.03% to hit 1.6288.

The Australian dollar found support after official data on Sunday showed that manufacturing activity in China jumped to an 11-month high in March, easing concerns over a slowdown in the world’s second largest economy. China is Australia’s largest export destination.

In Australia, official data showed earlier that building approvals fell unexpectedly in February, declining 7.8% after a 1.1% rise the previous month.

Later Monday, the Institute of Supply Management was to release a closely watched report on U.S. manufacturing activity.

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