Investing.com – The euro extended losses against the U.S. dollar on Thursday, tumbling to a seven-month low as investors shunned riskier assets after weak euro zone data added to concerns over a slowdown in global growth.
EUR/USD hit 1.3426 during European early afternoon trade, the pair’s lowest since February 14; the pair subsequently consolidated at 1.3434, tumbling 1.03%.
The pair was likely to find support at 1.3252, the low of February 14 and resistance at 1.3600, the day’s high.
Earlier in the day, data showed that German manufacturing output fell to a 24-month low in September, while manufacturing activity in the 17-nation single currency bloc slumped to the lowest since August 2009.
A separate report showed that euro zone factory orders fell more-than-expected in July.
The reports came after data showed that Chinese factory output fell for a third consecutive month in September, fanning fears over a slowdown in the world’s second largest economy.
The weak data added to concerns over the outlook for global growth after the Federal Reserve warned of “significant downside risks” facing the U.S. economy on Wednesday and announced fresh measures to boost growth.
The Fed unveiled a plan to trade short-term bonds for long-term ones, in an attempt to boost the economy by pushing down long-term interest rates, a move dubbed “Operation Twist.”
The euro was also down against the pound, with EUR/GBP shedding 0.44% to hit 0.8718.
Meanwhile, Greece’s government announced Wednesday that it had adopted further austerity measures to ensure it can reach deficit-reduction targets in order to access its next tranche of financial aid, due next month.
EUR/USD hit 1.3426 during European early afternoon trade, the pair’s lowest since February 14; the pair subsequently consolidated at 1.3434, tumbling 1.03%.
The pair was likely to find support at 1.3252, the low of February 14 and resistance at 1.3600, the day’s high.
Earlier in the day, data showed that German manufacturing output fell to a 24-month low in September, while manufacturing activity in the 17-nation single currency bloc slumped to the lowest since August 2009.
A separate report showed that euro zone factory orders fell more-than-expected in July.
The reports came after data showed that Chinese factory output fell for a third consecutive month in September, fanning fears over a slowdown in the world’s second largest economy.
The weak data added to concerns over the outlook for global growth after the Federal Reserve warned of “significant downside risks” facing the U.S. economy on Wednesday and announced fresh measures to boost growth.
The Fed unveiled a plan to trade short-term bonds for long-term ones, in an attempt to boost the economy by pushing down long-term interest rates, a move dubbed “Operation Twist.”
The euro was also down against the pound, with EUR/GBP shedding 0.44% to hit 0.8718.
Meanwhile, Greece’s government announced Wednesday that it had adopted further austerity measures to ensure it can reach deficit-reduction targets in order to access its next tranche of financial aid, due next month.