Investing.com - The broadly weaker euro was trading close to a 20-month low against the pound on Monday, as weak euro zone economic data and political uncertainty in France and the Netherlands weighed on demand for the single currency.
EUR/GBP hit 0.8166 during European morning trade, the session low; the pair subsequently consolidated at 0.8170, shedding 0.33%.
The pair was likely to find short-term support at 0.8161, last Thursday’s low and a 20-month trough and resistance at 0.8193, the high of the same day.
The euro weakened against the pound after data showed that the euro zone's manufacturing output slumped to its lowest level since June 2009 this month, while its services sector fell to a five month low.
The preliminary euro zone manufacturing purchasing managers’ index fell to a seasonally adjusted 46.0 in April from a final reading of 47.7 in March. Analysts had expected the index to ease up by 0.5 points to 48.2 in April.
The decline was driven by poor performances in Germany and France, with manufacturing activity in Germany slowing to the lowest level in almost three years.
The preliminary euro zone services PMI slid to 47.9 from 49.2 in March. Analysts had expected the index to ease up by 0.2 points to 49.4.
Sentiment was further hit by fresh concerns over the outlook for the euro zone, as investors mulled the implications of the first round of the French presidential election and the failure of Dutch budget talks.
The euro was also lower against the U.S. dollar, with EUR/USD shedding 0.58% to hit 1.3141.
The pound remained supported after data on Friday showed that U.K. retail sales posted the biggest jump in over a year in March, fuelling hopes that the economic recovery is gaining momentum and dampening expectations for a fresh round of monetary stimulus from the Bank of England.
EUR/GBP hit 0.8166 during European morning trade, the session low; the pair subsequently consolidated at 0.8170, shedding 0.33%.
The pair was likely to find short-term support at 0.8161, last Thursday’s low and a 20-month trough and resistance at 0.8193, the high of the same day.
The euro weakened against the pound after data showed that the euro zone's manufacturing output slumped to its lowest level since June 2009 this month, while its services sector fell to a five month low.
The preliminary euro zone manufacturing purchasing managers’ index fell to a seasonally adjusted 46.0 in April from a final reading of 47.7 in March. Analysts had expected the index to ease up by 0.5 points to 48.2 in April.
The decline was driven by poor performances in Germany and France, with manufacturing activity in Germany slowing to the lowest level in almost three years.
The preliminary euro zone services PMI slid to 47.9 from 49.2 in March. Analysts had expected the index to ease up by 0.2 points to 49.4.
Sentiment was further hit by fresh concerns over the outlook for the euro zone, as investors mulled the implications of the first round of the French presidential election and the failure of Dutch budget talks.
The euro was also lower against the U.S. dollar, with EUR/USD shedding 0.58% to hit 1.3141.
The pound remained supported after data on Friday showed that U.K. retail sales posted the biggest jump in over a year in March, fuelling hopes that the economic recovery is gaining momentum and dampening expectations for a fresh round of monetary stimulus from the Bank of England.