Investing.com - The euro remained marginally lower against the U.S. dollar on Thursday, trading close to a 22-month trough as concerns over the situation in the euro zone weighed, while disappointing U.S. manufacturing data cast doubts over the strength of the country’s economic recovery
EUR/USD pulled back from 1.2516, the pair’s lowest since July 6, 2010, to hit 1.2567 during U.S. morning trade, 0.11% lower on the day.
The pair was likely to find support at 1.2516 and resistance at 1.2598, the session high.
The euro briefly erased losses against the greenback after the Commerce Department said U.S. core durable goods orders fell by a seasonally adjusted 0.6% in April, defying expectations for a 0.9% gain and lower for the second consecutive month.
Total durable goods orders, which include transportation items, inched by a seasonally adjusted 0.2% in April, below expectations for a 0.5% gain.
But demand for the safe haven greenback remained supported after dismal euro zone economic data earlier in the day sparked fresh concerns over the impact of the crisis on the bloc’s economy.
The euro fell sharply after a report showed that manufacturing activity in the euro area contracted at the fastest pace since June 2009 in May, while service sector activity shrank at the steepest pace in seven months.
Germany manufacturing activity slowed to the lowest level in almost three years in May, sparking fresh fears over the impact of the euro zone debt crisis on the region’s largest economy.
A separate report showed that the German Ifo business climate index deteriorated significantly more-than-expected in May, pressured lower by uncertainty in the euro zone.
Market participants also remained risk adverse after Wednesday’s summit of European Union leaders made little signs of progress in tackling the debt crisis in the region.
Elsewhere, the euro slipped lower against the pound and the yen, with EUR/GBP dipping 0.04% to hit 0.8014 and EUR/JPY easing down 0.11% to hit 99.89.
Also Thursday, the U.S. Department of Labor said the number of people who filed for unemployment assistance in the U.S. last week fell to a seasonally adjusted 370,000, in line with expectations.
EUR/USD pulled back from 1.2516, the pair’s lowest since July 6, 2010, to hit 1.2567 during U.S. morning trade, 0.11% lower on the day.
The pair was likely to find support at 1.2516 and resistance at 1.2598, the session high.
The euro briefly erased losses against the greenback after the Commerce Department said U.S. core durable goods orders fell by a seasonally adjusted 0.6% in April, defying expectations for a 0.9% gain and lower for the second consecutive month.
Total durable goods orders, which include transportation items, inched by a seasonally adjusted 0.2% in April, below expectations for a 0.5% gain.
But demand for the safe haven greenback remained supported after dismal euro zone economic data earlier in the day sparked fresh concerns over the impact of the crisis on the bloc’s economy.
The euro fell sharply after a report showed that manufacturing activity in the euro area contracted at the fastest pace since June 2009 in May, while service sector activity shrank at the steepest pace in seven months.
Germany manufacturing activity slowed to the lowest level in almost three years in May, sparking fresh fears over the impact of the euro zone debt crisis on the region’s largest economy.
A separate report showed that the German Ifo business climate index deteriorated significantly more-than-expected in May, pressured lower by uncertainty in the euro zone.
Market participants also remained risk adverse after Wednesday’s summit of European Union leaders made little signs of progress in tackling the debt crisis in the region.
Elsewhere, the euro slipped lower against the pound and the yen, with EUR/GBP dipping 0.04% to hit 0.8014 and EUR/JPY easing down 0.11% to hit 99.89.
Also Thursday, the U.S. Department of Labor said the number of people who filed for unemployment assistance in the U.S. last week fell to a seasonally adjusted 370,000, in line with expectations.