Forex - EUR/USD hits session low after German PMI data

Published 10/24/2012, 03:40 AM
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Investing.com - The euro fell to a session low against the U.S. dollar on Wednesday, after weaker-than-expected German manufacturing data added to concerns over the economic impact of the euro zone's long-running debt crisis.

EUR/USD hit 1.2966 during early European trade, the session low; the pair subsequently consolidated at 1.2969, slipping 0.13%.

The pair was likely to find support at 1.2889, the low of October 15 and resistance at 1.3074, Tuesday’s high.

Germany’s flash manufacturing purchasing managers' index fell to 45.7 in October, from a final reading of 47.4 in September, disappointing expectations for an improvement to 48.0.

A separate report showed that France’s flash manufacturing PMI rose to 43.5 in October, from a final reading of 42.7 in September, compared to expectations for a reading of 44.0.

The euro had found some support earlier after a report showed that China's HSBC manufacturing PMI came in at 49.1 in October, compared with a final reading of 47.9 in September.

The euro was lower against the pound and the yen, with EUR/GBP down 0.28% to 0.8115 and EUR/JPY sliding 0.22% to 103.47.

Later Wednesday, the Federal Reserve was to announce its benchmark interest rate and release its first monetary policy statement since the central bank announced a third round of quantitative easing in September. The U.S. was to release official data on new home sales.


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