Investing.com - Financial Markets Worldwide

Forex - EUR/USD slips on strong U.S. data, Spanish fears

Published 05/01/2012, 11:57 AM
Updated 05/01/2012, 11:58 AM
EUR/USD
-
EUR/GBP
-

Investing.com - The euro traded lower against the U.S. dollar Tuesday, as a sharp increase in U.S. manufacturing activity attracted investors to the greenback, while Spanish concerns weighed on the single currency

EUR/USD pulled back from 1.3284, the pair’s peak since the start of April, to hit 1.3227 during U.S. trade, falling 0.08%.

The pair was likely to find support at 1.3172, the low of April 25 and resistance at 1.3284, the day’s high.

Fuelling the greenback’s rally, the U.S. Institute for Supply Management reported  the manufacturing purchasing managers’ index spiked to 54.8 in April, from 53.4 the previous month.

Analysts had expected the index to fall to 53.0 in April.

The bullish data arrived on the heels of a series of weaker-than-expected U.S. economic reports sparking speculation over further stimulus measures by the Federal Reserve. 

Meanwhile in China,  official data showed that an index of Chinese manufacturing activity rose to a 13-month high of 53.3 in April from 53.1 the previous month, but the data came in slightly below forecasts for a reading of 53.6.

However,  the euro remained under pressure amid ongoing concerns over the outlook for the single currency bloc, after official data on Monday confirming that Spain’s economy entered a recession in the first quarter sparked fresh fears that austerity measures could impair economic growth in the region.

Investors remained nervous ahead of weekend elections in Greece and France and the European Central Bank’s policy meeting on Thursday.

Elsewhere, the euro was higher against the pound with EUR/GBP traded lower by 0.01%, to hit 0.8154.

Trading remained light as markets in France, Germany and Italy were closed due to national holidays.



 

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.