Euro Mixed After Eurozone Manufacturing PMI
September 01 2014 - 5:32AM
RTTF2
The euro showed mixed trading against its major rivals in the
early European session on Monday after data showed that the
Eurozone manufacturing sector growth eased to its lowest level in
the current 14-month growth sequence in August.
Data from Markit Economics showed that Eurozone manufacturing
Purchasing Managers' Index fell to 50.7 in August from 51.8 in
July. It was the lowest score since July last year and was below
its earlier estimate of 50.8.
Traders focus on the European Central Bank policy meeting due on
Thursday, after the ECB president Mario Dragi commented on
potential further easing measures in the Jackson Hole annual
summit.
In the Asian session, the euro dropped against most major
currencies as Ukraine crisis flared up again.
Ukrainian President Petro Poroshenko warned a "full-scale war"
was imminent if Russian troops continued an advance in support of
pro-Moscow rebels, as Europe and the United States threatened
Russia that they will impose tougher sanctions on Moscow.
The euro recovered to 1.3138 against the U.S. dollar, from an
early 1-year low of 1.3118. If the euro extends its uptrend, it is
likely to find resistance around the 1.32 area.
Against the yen, the euro edged up to 136.85 from an early low
of 136.65. On the upside, 137.31 is seen as the next resistance
level for the euro.
Data from the Markit Economics showed that the manufacturing
sector in Japan expanded at an accelerated pace in August, with a
purchasing managers' index score of 52.2. That missed forecasts for
52.4, although it's up significantly from 50.5 in July.
Moving away from an early high of 0.7916 against the pound, the
euro depreciated to nearly a 6-week low of 0.7890. Continuation of
bearish trend may lead the euro to a support around the 0.787
mark.
Data from the Bank of England showed that U.K. mortgage
approvals declined in July after recording a strong increase in
June. The number of mortgages approved in July totaled 66,569
compared to 67,085 in June. It was forecast to fall to 66,000.
Against the Swiss franc, the euro edged up to 4-day high of
1.2069 in the earlier deals, and held steady thereafter.
The U.S. markets are closed in observance of Labor day
holiday.
Euro vs US Dollar (FX:EURUSD)
Forex Chart
From Aug 2024 to Sep 2024
Euro vs US Dollar (FX:EURUSD)
Forex Chart
From Sep 2023 to Sep 2024