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Forex - Euro remains lower against stronger dollar

Published 04/07/2015, 08:26 AM
© Reuters.  Euro remains on the downside vs. dollar, E.Z. service sector data weighs
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Investing.com - The euro remained lower against the U.S. dollar on Tuesday, as disappointing euro zone service sector data weighed and as the greenback continued to recover from last week's downbeat U.S. jobs report.

EUR/USD hit 1.0835 during European afternoon trade, the pair's lowest since April 2; the pair subsequently consolidated at 1.0853, declining 0.63%.

The pair was likely to find support at 1.0749, the low of April 2 and resistance at 1.1038, Monday's high.

Market research group Markit earlier reported that the euro zone's services purchasing managers' index slipped to 54.2 last month, from 54.3 in February. Analysts had expected the index to remain unchanged.

Germany's services PMI rose to 55.4 in March from a reading of 55.3 the previous month, Markit also reported, confounding expectations for the index to remain unchanged.

However, France's services PMI fell to 52.4 last month from 52.8 in February, compared to expectations for an unchanged reading.

The dollar had come under broad selling pressure after the Labor Department reported Friday that the U.S. economy added 126,000 new jobs in March, less than half of February’s gain and the smallest increase since December 2013.

The report added to doubts over the strength of the economic recovery, prompting investors to push back expectations for a rate hike by the Federal Reserve to the end of the year from midyear.

The euro was also lower against the pound, with EUR/GBP retreating 0.69% to 0.7290.

In the U.K., Markit said the services PMI increased to a seven-month high of 58.9 last month from a reading of 56.7 in February. Analysts had expected the index to rise to 57.0 in March.

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