Investing.com - The euro dropped to a fresh 22-month low against the pound on Wednesday, following data showing that manufacturing activity across the euro zone slumped to a 34-month low last month, while the unemployment rate in the bloc rose to a new record high in March.
EUR/GBP hit 0.8113 during European morning trade, the pair’s lowest since June 30, 2010; the pair subsequently consolidated at 0.8118, shedding 0.52%.
The pair was likely to find support at 0.8067, the low of June 29, 2010 and resistance at 0.8162, the session high.
The euro weakened broadly after a report showing that the final euro zone manufacturing purchasing managers’ index for April slumped to 45.9 in April, down from 47.7 in March and below the preliminary estimate of 46.0.
The data indicated that the region’s core economies are being affected by the ongoing debt crisis, with German manufacturing output falling at the fastest rate since July 2009.
A separate report earlier showed that the German unemployment rate also rose last month.
Meanwhile, official data showed that the unemployment rate across the 17-nation euro zone rose to a record 10.9% in March.
In Italy, government data showed that the unemployment rate unexpectedly jumped to 9.8% in March, the highest level since the current index began in 2004, from 9.3% the previous month.
The pound found support following reports showing that construction sector activity in the U.K. declined less-than-expected in April, while U.K. mortgage approvals rose unexpectedly in March.
The U.K. construction PMI came in at 55.8 in April, down from 56.7 the previous month, beating expectations for a decline to 54.0, indicating that the sector is continuing to recover.
The euro was also lower against the U.S. dollar and the yen, with EUR/USD shedding 0.69% to hit 1.3145 and EUR/JPY dropping 0.39% to hit 105.59.
Later in the day, the U.S. was to produce a report on ADP nonfarm payrolls, as well as government data on factory orders and crude oil stockpiles.
EUR/GBP hit 0.8113 during European morning trade, the pair’s lowest since June 30, 2010; the pair subsequently consolidated at 0.8118, shedding 0.52%.
The pair was likely to find support at 0.8067, the low of June 29, 2010 and resistance at 0.8162, the session high.
The euro weakened broadly after a report showing that the final euro zone manufacturing purchasing managers’ index for April slumped to 45.9 in April, down from 47.7 in March and below the preliminary estimate of 46.0.
The data indicated that the region’s core economies are being affected by the ongoing debt crisis, with German manufacturing output falling at the fastest rate since July 2009.
A separate report earlier showed that the German unemployment rate also rose last month.
Meanwhile, official data showed that the unemployment rate across the 17-nation euro zone rose to a record 10.9% in March.
In Italy, government data showed that the unemployment rate unexpectedly jumped to 9.8% in March, the highest level since the current index began in 2004, from 9.3% the previous month.
The pound found support following reports showing that construction sector activity in the U.K. declined less-than-expected in April, while U.K. mortgage approvals rose unexpectedly in March.
The U.K. construction PMI came in at 55.8 in April, down from 56.7 the previous month, beating expectations for a decline to 54.0, indicating that the sector is continuing to recover.
The euro was also lower against the U.S. dollar and the yen, with EUR/USD shedding 0.69% to hit 1.3145 and EUR/JPY dropping 0.39% to hit 105.59.
Later in the day, the U.S. was to produce a report on ADP nonfarm payrolls, as well as government data on factory orders and crude oil stockpiles.