By William Watts, MarketWatch

The euro was under pressure Thursday after another round of disappointing purchasing managers index readings underscored worries about an economic slowdown in the eurozone.

The IHS Market composite purchasing managers index -- a measure of activity in the manufacturing and services sectors based on a survey of 5,000 businesses -- fell to a three-month low of 51.3 (http://www.marketwatch.com/story/eurozone-april-pmi-points-to-more-weakness-2019-04-18) in April from 51.6 in March. A reading above 50 points to increased activity.

The euro traded at $1.1240 versus the dollar, compared with a level in late New York trading Wednesday of $1.1296. The euro extended its decline -- and the dollar strengthened versus most major rivals -- after U.S. March retail sales data came in stronger than expected.

The eurozone PMI data offered further evidence of divergence between "tentative signs of spring" in the services sector and a continued manufacturing recession in the eurozone, said Kit Juckes, global macro strategist at Société Générale, in a note.

"In the process, they've taken most of the bounce out of the euro-soufflé," he said. "The market's still short and the consensus is still bearish and the downside's probably limited, but so's the upside."

The ICE U.S. Dollar Index , a measure of the currency against a basket of six major rivals, was up 0.3% at 97.335. The dollar trimmed a decline versus the Japanese yen to fetch Yen111.97, down 0.1% on the day.

U.S. retail sales jumped 1.6% last month, the biggest rise in a year and a half (http://www.marketwatch.com/story/retail-sales-post-biggest-gain-in-1-12-years-point-to-rebounding-economy-2019-04-18) and topping expectations for a rise of 1.1%.

Separately, data showed the number of U.S. workers applying for first-time unemployment benefits fell for the fifth week in a row to a nearly 50-year low of 192,000 (http://www.marketwatch.com/story/jobless-claims-dive-even-lower-to-192000-sit-at-nearly-50-year-low-2019-04-18) in the week ended April 13.

On the downside, the Philadelphia Fed, meanwhile, said its manufacturing index for April declined to a reading of 8.5 (http://www.marketwatch.com/story/philly-fed-manufacturing-index-declines-in-april-as-outlook-drops-to-three-year-low-2019-04-18) from 13.7 a month earlier. Economists had forecast a reading of 11. Anything above zero indicates improving conditions.

(END) Dow Jones Newswires

April 18, 2019 09:42 ET (13:42 GMT)