Investing.com - The euro was supported above session lows against the dollar on Thursday after data indicated that the recovery in the euro zone’s private sector continued this month but expectations for easing by the European Central Bank continued to weigh.
EUR/USD was at 1.3670, 0.11% lower for the day, after falling as low as 1.3654 earlier, not far from the two-and-a-half month trough of 1.3633 reached on Wednesday.
The pair was likely to find support at 1.3654 and resistance at 1.3710.
The euro backed off session lows after data released on Thursday showed that manufacturing activity in the region expanded at the slowest rate in six months in May, but the region’s service sector expanded at the fastest rate in almost three years.
The euro zone flash manufacturing purchasing managers’ index slid to 52.5 this month, from 53.4 in April, Survey compiler Markit said, compared to expectations of 53.2.
The bloc’s services PMI rose to a 35-month high of 53.5 up from 53.1 in April. Analysts had expected the index to tick down to 53.0.
The report said output across the sector increased for the eleventh successive month, while growth in new orders hit a three-year high and employment rose at fastest rate since September 2011.
The euro zone PMI data echoed that of Germany, with growth in the German manufacturing sector slowing to a six month low and activity in the services sector growing at the fastest rate in nearly three years.
Germany’s manufacturing PMI slid to 52.9 from 54.1 in April, while the services PMI improved to 56.4 from 54.7 last month.
The French private sector fell back into contraction territory this month, with its manufacturing PMI down to a three month low of 49.3 from 51.2 in April and its services PMI falling to 49.2 from 50.4 last month.
The common currency remained under pressure amid heightened expectations for monetary easing by the ECB at its next meeting in June, in order to stop inflation from falling too low.
Elsewhere Thursday, EUR/JPY was up 0.12% to 138.93, holding above Wednesday’s more than three-month trough of 138.13.