Investing.com – The euro extended early losses against the U.S. dollar on Monday, falling to a fresh daily low, following the release of mixed euro zone economic data and as political uncertainty in Ireland weighed.
EUR/USD hit 1.354 during European late morning trade, the daily low; the pair subsequently consolidated at 1.3558, shedding 0.45%.
The pair was likely to find support at 1.3482, Friday’s low and short-term resistance at 1.3641, the day’s high and a nine-week high.
Earlier in the day, preliminary data showed that the Markit purchasing manager services index for the single currency zone rose to 55.2 from 54.2 in December, comfortably beating expectations for an increase to 54.3.
But Markit said that its preliminary manufacturing PMI unexpectedly fell to a two month low of 56.9 in January, from 57.1 the previous month, defying expectations for an unchanged reading.
Chris Williamson, chief economist at Markit said that the euro zone had started 2011 on a solid footing but added that, “The divergence between Germany and the rest of the single currency area has reached a new high, and outside of France and Germany the periphery has now seen new orders fall in four of the past five months.”
Political turmoil in Ireland also hit sentiment after Irish Prime Minister Brian Cowen said on Saturday that he would step down as the leader of the ruling Fianna Fail party.
The euro was also lower against the pound, with EUR/GBP slipping 0.14% to hit 0.8501.
Also Monday, official data showed that euro zone industrial new orders rose less-than-expected in November.
EUR/USD hit 1.354 during European late morning trade, the daily low; the pair subsequently consolidated at 1.3558, shedding 0.45%.
The pair was likely to find support at 1.3482, Friday’s low and short-term resistance at 1.3641, the day’s high and a nine-week high.
Earlier in the day, preliminary data showed that the Markit purchasing manager services index for the single currency zone rose to 55.2 from 54.2 in December, comfortably beating expectations for an increase to 54.3.
But Markit said that its preliminary manufacturing PMI unexpectedly fell to a two month low of 56.9 in January, from 57.1 the previous month, defying expectations for an unchanged reading.
Chris Williamson, chief economist at Markit said that the euro zone had started 2011 on a solid footing but added that, “The divergence between Germany and the rest of the single currency area has reached a new high, and outside of France and Germany the periphery has now seen new orders fall in four of the past five months.”
Political turmoil in Ireland also hit sentiment after Irish Prime Minister Brian Cowen said on Saturday that he would step down as the leader of the ruling Fianna Fail party.
The euro was also lower against the pound, with EUR/GBP slipping 0.14% to hit 0.8501.
Also Monday, official data showed that euro zone industrial new orders rose less-than-expected in November.