Investing.com - The euro slumped to a fresh session low against the U.S. dollar on Thursday, after data showed that manufacturing activity in Germany slowed to the lowest level in three years in June as the ongoing euro zone crisis hit export demand.
EUR/USD hit 1.2644 during European morning trade, the session low; the pair subsequently consolidated at 1.2645, shedding 0.49%.
The pair was likely to find support at 1.2556, Monday’s low and resistance at 1.2746, Monday’s high and a one-month high.
Markit said that it’s preliminary German manufacturing purchasing managers’ index declined by 0.5 points to a seasonally adjusted 44.7 in June from a final reading of 45.2 in May.
Analysts had expected the index to hold steady at 45.2 in June.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
The country’s service sector expanded, albeit at a slower than expected pace, with the PMI at 50.3, down from May's final reading of 51.8.
Meanwhile, investors remained jittery ahead to the outcome of an audit of Spanish banks later in the day, amid concerns that the results could show that a EUR100 billion bailout for the country’s banks agreed earlier this month would not be large enough.
The greenback remained supported after the Federal Reserve announced that it is extending the current bond buying program, known as "Operation Twist", until the end of the year and said that it was ready to take additional steps. The bond purchasing program had been due to expire this month.
The announcement disappointed market expectations for more aggressive measures to shore up growth in the world’s largest economy, following a recent string of weak U.S. data.
The euro also extended losses against the pound and the yen, with EUR/GBP down 0.14% to hit 0.8070 and EUR/JPY shedding 0.36% to trade at 100.69.
Later Thursday, Spain was to hold an auction of government debt, while European Central Bank head Mario Draghi was to speak.
The U.S. was to produce government data on unemployment claims, followed by preliminary data on manufacturing activity and an industry report on existing home sales. The country was also to release data on manufacturing activity in the Philadelphia area.
EUR/USD hit 1.2644 during European morning trade, the session low; the pair subsequently consolidated at 1.2645, shedding 0.49%.
The pair was likely to find support at 1.2556, Monday’s low and resistance at 1.2746, Monday’s high and a one-month high.
Markit said that it’s preliminary German manufacturing purchasing managers’ index declined by 0.5 points to a seasonally adjusted 44.7 in June from a final reading of 45.2 in May.
Analysts had expected the index to hold steady at 45.2 in June.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
The country’s service sector expanded, albeit at a slower than expected pace, with the PMI at 50.3, down from May's final reading of 51.8.
Meanwhile, investors remained jittery ahead to the outcome of an audit of Spanish banks later in the day, amid concerns that the results could show that a EUR100 billion bailout for the country’s banks agreed earlier this month would not be large enough.
The greenback remained supported after the Federal Reserve announced that it is extending the current bond buying program, known as "Operation Twist", until the end of the year and said that it was ready to take additional steps. The bond purchasing program had been due to expire this month.
The announcement disappointed market expectations for more aggressive measures to shore up growth in the world’s largest economy, following a recent string of weak U.S. data.
The euro also extended losses against the pound and the yen, with EUR/GBP down 0.14% to hit 0.8070 and EUR/JPY shedding 0.36% to trade at 100.69.
Later Thursday, Spain was to hold an auction of government debt, while European Central Bank head Mario Draghi was to speak.
The U.S. was to produce government data on unemployment claims, followed by preliminary data on manufacturing activity and an industry report on existing home sales. The country was also to release data on manufacturing activity in the Philadelphia area.