Euro Lower As Recession Concerns Grow After Weak Eurozone PMI Data
July 05 2022 - 4:51AM
RTTF2
The euro fell against its major rivals in the European session
on Tuesday, as natural gas prices climbed and Eurozone business
growth slowed sharply in June, intensifying worries about a
recession.
Final survey results from S&P Global showed that the
eurozone private sector expanded at a slower pace in June as the
manufacturing production logged its first fall in two years on one
side and the weaker growth in services activity on the other.
The final composite output index fell to 52.0 in June from 54.8
in the previous month. The reading was slightly above the initial
estimate of 51.9.
The services Purchasing Managers' Index dropped to 53.0 in June
from 56.1 in May. The flash score was 52.8.
European stocks and German bond yields declined on concerns
about a possible recession. The yield on the 10-year bund dropped
to 1.299 percent.
The euro depreciated to 1.0280 against the greenback for the
first time since December 2002. On the downside, 1.00 is possibly
seen as its next support level.
The euro weakened to near 3-week lows of 0.8543 against the
pound and 139.55 against the yen, easing from its early high of
0.8623 and a 4-day high of 142.37, respectively. The euro is seen
finding support around 0.84 against the pound and 136.00 against
the yen.
The euro touched a 5-day low of 1.6708 against the kiwi and more
than a 7-year low of 1.3295 against the loonie, following its prior
highs of 1.3423 and 1.6832, respectively. The currency may face
support near 1.66 against the kiwi and 1.31 against the loonie.
The euro declined to 0.9925 against the franc, its weakest level
since January 2015. The next possible downside target for the
currency is seen around the 0.97 level.
The euro remained lower against aussie, after hitting a 5-day
low of 1.5130 at 9:30 pm ET. The pair had closed yesterday's deals
at 1.5176.
Looking ahead, U.S. factory orders for May will be released in
the New York session.
Euro vs Yen (FX:EURJPY)
Forex Chart
From Aug 2024 to Sep 2024
Euro vs Yen (FX:EURJPY)
Forex Chart
From Sep 2023 to Sep 2024