Investing.com - The euro dropped to a one-week low against the U.S. dollar on Thursday, as concerns over a global economic slowdown were amplified by a weak Chinese manufacturing report, while investors eyed the release of key euro zone data later in the day.
EUR/USD hit 1.2983 during late Asian trade, the pair's lowest since September 13; the pair subsequently consolidated at 1.2976, dropping 0.54%.
The pair was likely to find support at 1.2861, the low of September 13 and resistance at 1.3085, Wednesday's high.
Fresh concerns over the outlook for growth in China were fueled by data earlier showing that the HSBC flash purchasing managers' index ticked up to 47.8 in September from a nine-month low in August of 47.6, but remained below 50 for an 11th consecutive month in a row, showing the sector was still contracting.
The euro had come under pressure on Wednesday, after reports surfaced that some German lawmakers are seeking to water down proposals for a European banking union and supervision of euro zone banks by the European Central Bank.
Investors also remained cautious amid ongoing uncertainty over whether the Spanish will ask for help from the European Central Bank's new bond-purchasing program, which would mean signing up to a permanent bailout fund.
Markets were eyeing an auction of 10-year Spanish government bonds later in the day, as it was expected to be an important test of investor appetite for the country’s debt.
Earlier Thursday, official data showed that producer price inflation in Germany rose by 0.5% in August, following a flat reading the previous month.
Analysts had expected producer price inflation to rise 0.4% in August.
The euro was also lower against the pound with EUR/GBP shedding 0.34%, to hit 0.8017.
Later in the day, the euro zone was to produce preliminary data on manufacturing and service sector activity, while Germany and France were to release individual reports. In addition, European Central Bank President Mario Draghi was to speak at a conference in Frankfurt.
The U.S. was to release its weekly government report on initial jobless claims, as well as an index of manufacturing activity in Philadelphia.
EUR/USD hit 1.2983 during late Asian trade, the pair's lowest since September 13; the pair subsequently consolidated at 1.2976, dropping 0.54%.
The pair was likely to find support at 1.2861, the low of September 13 and resistance at 1.3085, Wednesday's high.
Fresh concerns over the outlook for growth in China were fueled by data earlier showing that the HSBC flash purchasing managers' index ticked up to 47.8 in September from a nine-month low in August of 47.6, but remained below 50 for an 11th consecutive month in a row, showing the sector was still contracting.
The euro had come under pressure on Wednesday, after reports surfaced that some German lawmakers are seeking to water down proposals for a European banking union and supervision of euro zone banks by the European Central Bank.
Investors also remained cautious amid ongoing uncertainty over whether the Spanish will ask for help from the European Central Bank's new bond-purchasing program, which would mean signing up to a permanent bailout fund.
Markets were eyeing an auction of 10-year Spanish government bonds later in the day, as it was expected to be an important test of investor appetite for the country’s debt.
Earlier Thursday, official data showed that producer price inflation in Germany rose by 0.5% in August, following a flat reading the previous month.
Analysts had expected producer price inflation to rise 0.4% in August.
The euro was also lower against the pound with EUR/GBP shedding 0.34%, to hit 0.8017.
Later in the day, the euro zone was to produce preliminary data on manufacturing and service sector activity, while Germany and France were to release individual reports. In addition, European Central Bank President Mario Draghi was to speak at a conference in Frankfurt.
The U.S. was to release its weekly government report on initial jobless claims, as well as an index of manufacturing activity in Philadelphia.