Investing.com - The euro was steady against the U.S. dollar on Thursday, hovering above a 22-month low after falling sharply earlier, as weak euro zone economic data sparked fresh concerns over the impact of the crisis on the region’s economy.
EUR/USD pulled back from 1.2516, the pair’s lowest since July 6, 2010, to hit 1.2575 during European afternoon trade, 0.04% lower on the day.
The pair was likely to find support at 1.2516 and resistance at 1.2598, the session high.
The euro fell to a 22-month trough against the greenback earlier, after data 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.
Investors 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, fuelling worries that the current turmoil in markets is set to continue.
Leaders reiterated that they want Greece to remain in the euro area, but urged the country to honor its commitments to austerity measures and the reforms demanded under its bailout program.
The euro was little changed against the pound, with EUR/GBP inching up 0.01% to hit 0.8018, but remained close to a three-and-a-half month low against the yen, with EUR/JPY shedding 0.20% to hit 99.81.
Meanwhile, market participants were looking ahead to U.S. government reports on core durable goods orders and initial jobless claims later in the day.
EUR/USD pulled back from 1.2516, the pair’s lowest since July 6, 2010, to hit 1.2575 during European afternoon trade, 0.04% lower on the day.
The pair was likely to find support at 1.2516 and resistance at 1.2598, the session high.
The euro fell to a 22-month trough against the greenback earlier, after data 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.
Investors 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, fuelling worries that the current turmoil in markets is set to continue.
Leaders reiterated that they want Greece to remain in the euro area, but urged the country to honor its commitments to austerity measures and the reforms demanded under its bailout program.
The euro was little changed against the pound, with EUR/GBP inching up 0.01% to hit 0.8018, but remained close to a three-and-a-half month low against the yen, with EUR/JPY shedding 0.20% to hit 99.81.
Meanwhile, market participants were looking ahead to U.S. government reports on core durable goods orders and initial jobless claims later in the day.