Investing.com - The euro was steady close to multi-month lows against the U.S. dollar and the yen on Thursday, after weakening broadly earlier as dismal euro zone economic data reignited concerns over the impact of the region’s debt crisis on the outlook for growth.
During European late morning trade, the euro was hovering above a 22-month low against the U.S. dollar, with EUR/USD dipping 0.02% to hit 1.2579.
Investor sentiment was hit 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.
Investors 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.
Elsewhere, the single currency was fractionally lower against the pound, with EUR/GBP inching down 0.03% to hit 0.8015.
Data from the U.K. 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%.
The euro was trading close to a three-and-a-half month low against the yen, with EUR/JPY losing 0.13% to hit 99.87, but remained little changed against the Swiss franc, with EUR/CHF trading at 1.2009.
Elsewhere, the shared currency was weaker against the Canadian, Australian and New Zealand dollars, with EUR/CAD slipping 0.14% to hit 1.2881, EUR/AUD shedding 0.42% to hit 1.2855 and EUR/NZD falling 0.63% to hit 1.6670.
Meanwhile, market participants were looking ahead to U.S. government reports on core durable goods orders and initial jobless claims later in the day.
During European late morning trade, the euro was hovering above a 22-month low against the U.S. dollar, with EUR/USD dipping 0.02% to hit 1.2579.
Investor sentiment was hit 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.
Investors 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.
Elsewhere, the single currency was fractionally lower against the pound, with EUR/GBP inching down 0.03% to hit 0.8015.
Data from the U.K. 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%.
The euro was trading close to a three-and-a-half month low against the yen, with EUR/JPY losing 0.13% to hit 99.87, but remained little changed against the Swiss franc, with EUR/CHF trading at 1.2009.
Elsewhere, the shared currency was weaker against the Canadian, Australian and New Zealand dollars, with EUR/CAD slipping 0.14% to hit 1.2881, EUR/AUD shedding 0.42% to hit 1.2855 and EUR/NZD falling 0.63% to hit 1.6670.
Meanwhile, market participants were looking ahead to U.S. government reports on core durable goods orders and initial jobless claims later in the day.