Investing.com - The euro weakened against the dollar early Tuesday after weak manufacturing data surfaced in Europe as well as in China, which sent the single currency sliding in a risk-off trading session.
In Asian trading on Tuesday, EUR/USD was trading down 0.06% at 1.2586, up from a low of 1.2561 and off from a high of 1.2611.
The pair was likely to find support at 1.2494, Friday's low, and resistance at 1.2637, Friday's high.
Revised data released earlier revealed the eurozone’s manufacturing sector contracted for the 13th consecutive month in August.
The Markit research firm reported earlier the eurozone's manufacturing purchasing managers’ index rose to 45.1 from July's 37-month low of 44 but fell short of analysts' calls for a 45.3 reading.
The reading came in well below the 50 mark that separates growth from contraction.
Markit also reported that Germany's manufacturing purchasing managers' index hit 44.7, below analysts' calls for 45.1 reading.
The greenback, however capped its gains on expectations the Federal Reserve will announce plans to stimulate the economy at its Sept. 11-12 monetary policy meeting.
Fed Chairman Ben Bernanke said in a speech last week that U.S. monetary authorities won't rule out the use of easing tools should the economy fail to pick up the pace of its recovery.
Monetary stimulus tools weaken the dollar.
Investors continue to wait for the European Central Bank to announce plans to buy Italian and Spanish sovereign debt to lower borrowing costs there, which sparked profit-taking in early Asian trading on Monday.
Global growth concerns weakened the single currency as well.
The Chinese HSBC Manufacturing PMI disappointed on Monday, hitting 47.6 in August, a tenth successive month-on-month deterioration in Chinese manufacturing operating conditions and the lowest reading since March 2009.
The euro, meanwhile, was down against the pound and up against the yen, with EUR/GBP down 0.02% at 0.7924, and EUR/JPY trading up 0.04% at 98.59.
Later Tuesday, the U.S. will release a report by the Institute for Supply Management on manufacturing PMI.
In Asian trading on Tuesday, EUR/USD was trading down 0.06% at 1.2586, up from a low of 1.2561 and off from a high of 1.2611.
The pair was likely to find support at 1.2494, Friday's low, and resistance at 1.2637, Friday's high.
Revised data released earlier revealed the eurozone’s manufacturing sector contracted for the 13th consecutive month in August.
The Markit research firm reported earlier the eurozone's manufacturing purchasing managers’ index rose to 45.1 from July's 37-month low of 44 but fell short of analysts' calls for a 45.3 reading.
The reading came in well below the 50 mark that separates growth from contraction.
Markit also reported that Germany's manufacturing purchasing managers' index hit 44.7, below analysts' calls for 45.1 reading.
The greenback, however capped its gains on expectations the Federal Reserve will announce plans to stimulate the economy at its Sept. 11-12 monetary policy meeting.
Fed Chairman Ben Bernanke said in a speech last week that U.S. monetary authorities won't rule out the use of easing tools should the economy fail to pick up the pace of its recovery.
Monetary stimulus tools weaken the dollar.
Investors continue to wait for the European Central Bank to announce plans to buy Italian and Spanish sovereign debt to lower borrowing costs there, which sparked profit-taking in early Asian trading on Monday.
Global growth concerns weakened the single currency as well.
The Chinese HSBC Manufacturing PMI disappointed on Monday, hitting 47.6 in August, a tenth successive month-on-month deterioration in Chinese manufacturing operating conditions and the lowest reading since March 2009.
The euro, meanwhile, was down against the pound and up against the yen, with EUR/GBP down 0.02% at 0.7924, and EUR/JPY trading up 0.04% at 98.59.
Later Tuesday, the U.S. will release a report by the Institute for Supply Management on manufacturing PMI.