Investing.com - The euro turned lower against its major counterparts on Monday, as initial euphoria which greeted new measures to ease the debt crisis in the euro zone faded and concerns over the outlook for the global economy resurfaced.
During European late morning trade, the euro was lower against the U.S. dollar, with EUR/USD shedding 0.31% to trade at 1.2622.
At the end of a two-day summit on Friday, European leaders agreed to use the euro zone’s bailout funds to support struggling banks directly, without adding to national debt, and to purchase government debt in order to keep borrowing costs down.
Leaders also agreed to set up a joint banking supervisory body for the euro area.
Markets rallied following the announcement, as expectations for concrete progress on dealing with the crisis had faded in the run up to the talks.
But market sentiment cooled, amid questions over the long-term effectiveness of the measures in addressing the root causes of the euro zone’s debt crisis and uncertainty over how and when the measures can be implemented.
Meanwhile, concerns over the euro zone’s economy re-emerged after official data showed that the unemployment rate in the euro area rose to a record high 11.1% in May, up from 11.0% in April.
A separate report showed that the final reading of the euro zone manufacturing purchasing managers’ index came in at 45.1 in June, above the preliminary estimate of 44.8 and holding steady at its lowest level since June 2009.
The single currency was weaker against the yen, with EUR/JPY down 0.54% to 100.49, but remained little changed against the Swiss franc, with EUR/CHF inching up 0.03% to 1.2015.
In Switzerland, official data showed that retail sales jumped 6.2% year-over-year in May, outstripping expectations for a 5.0% gain.
Another report showed that Swiss manufacturing activity improved unexpectedly in June, but remained in contraction territory for the third consecutive month.
The euro edged lower against the pound, with EUR/GBP slipping 0.12% to trade at 0.8052.
The pound found some support after data showed that manufacturing activity in the U.K. improved in June, but conditions remained fragile.
The U.K. manufacturing purchasing managers’ index rose to 48.6 in June from a reading of 45.9 in May, but remained below the 50 level which separates contraction from expansion. Analysts had expected a reading of 46.7.
The euro was weaker against the Canadian, Australian and New Zealand dollars, with EUR/CAD sliding 0.26% to hit 1.2837, EUR/AUD shedding 0.46% to hit 1.2310 and EUR/NZD down 0.53% to hit 1.5711.
Earlier Monday, data showed that China’s HSBC PMI posted a reading of 48.2 in June, little changed from an initial estimate of 48.1, remaining in contraction territory for the eighth successive month.
Later in the session, the Institute for Supply Management was to release a report on activity in the U.S. manufacturing sector.
During European late morning trade, the euro was lower against the U.S. dollar, with EUR/USD shedding 0.31% to trade at 1.2622.
At the end of a two-day summit on Friday, European leaders agreed to use the euro zone’s bailout funds to support struggling banks directly, without adding to national debt, and to purchase government debt in order to keep borrowing costs down.
Leaders also agreed to set up a joint banking supervisory body for the euro area.
Markets rallied following the announcement, as expectations for concrete progress on dealing with the crisis had faded in the run up to the talks.
But market sentiment cooled, amid questions over the long-term effectiveness of the measures in addressing the root causes of the euro zone’s debt crisis and uncertainty over how and when the measures can be implemented.
Meanwhile, concerns over the euro zone’s economy re-emerged after official data showed that the unemployment rate in the euro area rose to a record high 11.1% in May, up from 11.0% in April.
A separate report showed that the final reading of the euro zone manufacturing purchasing managers’ index came in at 45.1 in June, above the preliminary estimate of 44.8 and holding steady at its lowest level since June 2009.
The single currency was weaker against the yen, with EUR/JPY down 0.54% to 100.49, but remained little changed against the Swiss franc, with EUR/CHF inching up 0.03% to 1.2015.
In Switzerland, official data showed that retail sales jumped 6.2% year-over-year in May, outstripping expectations for a 5.0% gain.
Another report showed that Swiss manufacturing activity improved unexpectedly in June, but remained in contraction territory for the third consecutive month.
The euro edged lower against the pound, with EUR/GBP slipping 0.12% to trade at 0.8052.
The pound found some support after data showed that manufacturing activity in the U.K. improved in June, but conditions remained fragile.
The U.K. manufacturing purchasing managers’ index rose to 48.6 in June from a reading of 45.9 in May, but remained below the 50 level which separates contraction from expansion. Analysts had expected a reading of 46.7.
The euro was weaker against the Canadian, Australian and New Zealand dollars, with EUR/CAD sliding 0.26% to hit 1.2837, EUR/AUD shedding 0.46% to hit 1.2310 and EUR/NZD down 0.53% to hit 1.5711.
Earlier Monday, data showed that China’s HSBC PMI posted a reading of 48.2 in June, little changed from an initial estimate of 48.1, remaining in contraction territory for the eighth successive month.
Later in the session, the Institute for Supply Management was to release a report on activity in the U.S. manufacturing sector.