Investing.com - The euro was broadly lower against the other main currencies on Thursday after data showed that private sector activity in the euro area slowed in February, but growth remained solid.
EUR/USD hit 1.3686, the lowest since February 14 and was last down 0.26% to 1.3698.
The pair was likely to find support at 1.3675 and resistance at 1.3761, the session high.
The Markit euro zone composite output purchasing managers’ index ticked down to a two month low of 52.7 this month, but remained close to January’s 31-month high of 52.9.
A modest pickup in service sector activity was offset by an easing the rate of manufacturing output. However manufacturing activity continued to outperform services activity, in part due to strong export demand from outside the euro area.
The euro zone’s manufacturing PMI fell to a two-month low of 53.0 from 54.0 in January, compared to expectations for an unchanged reading.
The region’s services PMI ticked up to 51.7 from 51.6 in January, slightly below expectations for a rise to 51.9.
Germany’s manufacturing PMI slowed to 54.7 from 56.5 in January, compared to expectations for a reading of 56.3. The country’s services PMI rose to 55.4 this month from 53.1 in January, ahead of forecasts for 53.4.
The French manufacturing PMI fell to a two month low of 48.5, while the nation’s services PMI fell to a nine-month low of 46.9, fuelling fears that the French economy may contract in the first quarter.
“A dip in the euro zone PMI provides a reminder that the region’s recovery continues to be uneven and fragile,” Chris Williamson, Chief Economist at Markit said.
“Looking at the latest two months as a whole, the PMI suggests the region is on course to see GDP expand by up to 0.5% in the first quarter, which would be the strongest growth for three years.“
The euro was sharply lower against the yen, with EUR/JPY dropping 0.78% to 139.41.
The safe haven yen was boosted after data on Thursday showed that the preliminary reading of China’s HSBC manufacturing index fell to a seven month low of 48.3 this month, down from 49.5 in January, falling further below the 50 level that separates expansion from contraction.
Elsewhere, the euro edged lower against the pound, with EUR/GBP dipping 0.06% to 0.8228.