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Forex - EUR/USD pares gains but remains supported

Published 10/05/2015, 10:08 AM
© Reuters.  Euro pulls back from session highs vs. dollar but losses limited
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Investing.com - The euro pared gains against the U.S. dollar on Monday, as disappointing service sector data from the euro zone weighed, although the dollar also remained under pressure by downbeat U.S. economic reports.

EUR/USD pulled back from 1.1289, the session high, to hit 1.1220 during U.S. morning trade, still up 0.09%.

The pair was likely to find support at 1.1148, Friday's low and resistance at 1.1318, Friday's high and a two-week high.

Research group Markit earlier reported that Germany's services purchasing managers' index slipped to 54.1 in September from 54.3 in August, while France's services PMI ticked up to 51.9 from 51.2.

Markit's services PMI for the entire euro zone fell to 53.7 last month from 54.0 in August.

The weak data came amid growing speculation the European Central Bank could add further stimulus measures.

In the U.S., the Institute of Supply Management reported on Monday that its non-manufacturing PMI fell to 56.9 in September from a reading of 59.0 the previous month. Analysts had expected the index to tick down to 57.5 last month.

The report came after weak U.S. jobs data on Friday underlined fears that a slowdown in global economic growth has spread to the U.S. economy and prompted investors to push back expectations on the timing of an initial rate hike by the Federal Reserve to early 2016.

The euro was higher against the pound, with EUR/GBP adding -% to -.

Sterling came under pressure after Markit reported that its U.K. services PMI fell to 53.3 in September from a reading of 55.6 the previous month. Analysts had expected the index to rise to 56.0 last month.

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