Investing.com - The euro pulled back from session lows against the dollar on Thursday and was supported against the yen after data showed that the recovery in the euro zone private sector continued in May.
EUR/USD was trading at 1.3676, after falling as low as 1.3654 earlier, not far from the two-and-a-half month trough of 1.3633 reached on Wednesday.
The pair was likely to find support at 1.3654 and resistance at 1.3710.
Manufacturing activity in the euro zone expanded at the slowest rate in six months in May, but the region’s service sector expanded at the fastest rate in almost three years.
The euro zone flash manufacturing purchasing managers’ index slid to 52.5 this month, from 53.4 in April, Survey compiler Markit said, compared to expectations of 53.2.
The bloc’s services PMI rose to a 35-month high of 53.5 up from 53.1 in April. Analysts had expected the index to tick down to 53.0.
The report said output across the sector increased for the eleventh successive month, while growth in new orders hit a three-year high and employment rose at fastest rate since September 2011.
The euro zone PMI data echoed that of Germany, with growth in the German manufacturing sector slowing to a six month low and activity in the services sector growing at the fastest rate in nearly three years.
Germany’s manufacturing PMI slid to 52.9 from 54.1 in April, while the services PMI improved to 56.4 from 54.7 last month.
The French private sector fell back into contraction territory this month, with its manufacturing PMI down to a three month low of 49.3 from 51.2 in April and its services PMI falling to 49.2 from 50.4 last month.
EUR/JPY was up 0.12% to 138.91 following the release of the data, holding above Wednesday’s more than three-month trough of 138.13.