Investing.com - The euro extended losses against the U.S. dollar on Monday, sliding to a two-day low, after weak euro zone data and sustained concerns over political uncertainty in France and the Netherlands weighed.
EUR/USD hit 1.3128 during European afternoon trade, the pair’s lowest since Thursday; the pair subsequently consolidated at 1.3133, shedding 0.64%.
The pair was likely to find support at 1.3068, Thursday’s low and resistance at 1.3209, the session high.
Earlier Monday, data showed that the euro zone's manufacturing output slumped to its lowest level since June 2009 this month, while its services sector fell to a five month low.
The preliminary euro zone manufacturing purchasing managers’ index fell to a seasonally adjusted 46.0 in April from a final reading of 47.7 in March. Analysts had expected the index to ease up by 0.5 points to 48.2 in April.
The preliminary euro zone services PMI slid to 47.9 from 49.2 in March. Analysts had expected the index to ease up by 0.2 points to 49.4.
The decline was driven by poor performances in Germany and France, with manufacturing activity in Germany slowing to the lowest level in almost three years.
The weak data fuelled fears economic growth in the region will be hit by planned government austerity measures.
Sentiment was further hit by fresh concerns over political uncertainty in the euro zone, as investors mulled the implications of the impending collapse of the Dutch government following failed budget negotiations and outcome of the first round of the French presidential election.
The euro was trading close to a 20-month low against the pound, with EUR/GBP shedding 0.38% to hit 0.8166 and was sharply lower against the yen, with EUR/JPY tumbling 1.22% to hit 106.48.
Also Monday, the Bank of Spain said it believes that the country’s economy has entered a recession.
The central bank said gross domestic product contracted by 0.4% in the three months to March. That follows a 0.3% contraction in the fourth quarter, and zero growth in the third quarter of last year.
EUR/USD hit 1.3128 during European afternoon trade, the pair’s lowest since Thursday; the pair subsequently consolidated at 1.3133, shedding 0.64%.
The pair was likely to find support at 1.3068, Thursday’s low and resistance at 1.3209, the session high.
Earlier Monday, data showed that the euro zone's manufacturing output slumped to its lowest level since June 2009 this month, while its services sector fell to a five month low.
The preliminary euro zone manufacturing purchasing managers’ index fell to a seasonally adjusted 46.0 in April from a final reading of 47.7 in March. Analysts had expected the index to ease up by 0.5 points to 48.2 in April.
The preliminary euro zone services PMI slid to 47.9 from 49.2 in March. Analysts had expected the index to ease up by 0.2 points to 49.4.
The decline was driven by poor performances in Germany and France, with manufacturing activity in Germany slowing to the lowest level in almost three years.
The weak data fuelled fears economic growth in the region will be hit by planned government austerity measures.
Sentiment was further hit by fresh concerns over political uncertainty in the euro zone, as investors mulled the implications of the impending collapse of the Dutch government following failed budget negotiations and outcome of the first round of the French presidential election.
The euro was trading close to a 20-month low against the pound, with EUR/GBP shedding 0.38% to hit 0.8166 and was sharply lower against the yen, with EUR/JPY tumbling 1.22% to hit 106.48.
Also Monday, the Bank of Spain said it believes that the country’s economy has entered a recession.
The central bank said gross domestic product contracted by 0.4% in the three months to March. That follows a 0.3% contraction in the fourth quarter, and zero growth in the third quarter of last year.