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Forex - EUR/USD lower amid flurry of mixed data points

Published 01/02/2013, 09:58 PM
Updated 01/02/2013, 09:59 PM
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Investing.com -The euro slid against the U.S. dollar and several of the other major currencies in Thursday’s Asian session after a spate of mixed data points out of the Eurozone delivered during Wednesday’s session may have triggered some profit-taking in the common currency.

In Asian trading Thursday, EUR/USD fell 0.29% to 1.3150. The pair was likely to find support at 1.3144, the low from Dec. 17, and resistance at 1.3308, the high from Dec. 19.

The pair traded lower during the Wednesday U.S. and European sessions after Markit Economics said that German manufacturing PMI fell to a seasonally adjusted 46.0, from 46.3 in the preceding month.

Analysts had expected German manufacturing PMI to remain unchanged at 46.3 last month. Germany is the Eurozone’s largest economy. Meanwhile, Markit Finacial Information Services said that Spain’s Manufacturing PMI fell to 44.6, from 45.3 in the preceding month.

Analysts had expected Spain’s Manufacturing PMI to fall to 45.1 last month. Spain is the Eurozone’s fourth-largest economy.

Overall, Eurozone manufacturing PMI fell to 46.1 in December, from 46.3 in the preceding month. Analysts had expected the euro zone’s manufacturing PMI to remain unchanged at 46.3 last month.

Traders may also be bidding the dollar higher following some mixed U.S. data releases and the best day for U.S. stocks in a year. In U.S. news, the Institute for Supply Management said its manufacturing index rose to 50.7 in December from 49.5 in November. Readings above 50 signal expansion. ISM's employment index rose to 52.7 from 48.4 in November.

The Commerce Department said construction spending fell 0.3% in November. The October number was revised lower to an increase of 0.7% from an initial reading of growth of 1.4%. The November decline is the first since March 2012.

Elsewhere, EUR/JPY slipped 0.55% to 114.55 while EUR/GBP fell 0.18% to 0.8098. EUR/AUD dropped 0.24% to 1.2525.


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