Euro Falls On Soft PMI Data
21 Juni 2024 - 9:44AM
RTTF2
The euro weakened against other major currencies in the European
session on Friday, as investor sentiment weighed on weak business
activity data from the region.
Data from S&P Global showed that the euro area private
sector recovery suffered a setback in June as business activity and
employment growth softened due to weak orders. The flash HCOB
composite output index fell unexpectedly to 50.8 in June from 52.2
in May. The score was below forecast of 52.5.
The flash services Purchasing Managers' Index fell to a
three-month low of 52.6 from 53.2 in May. The score was forecast to
rise to 53.5.
At 45.6, the manufacturing PMI fell to a six-month low from 47.3
in the previous month. The reading was expected to rise to
48.0.
Germany's composite output index posted 50.6 in June, down from
52.4 in May and was lower than the forecasted 52.7. The score fell
from a 12-month high signaling a noticeable slowdown in the rate of
growth.
The services PMI fell to 53.5 in June from 54.2 in the previous
month and was lower than the expected 54.4. Likewise, the
manufacturing PMI dropped to 43.4 from 45.4. The reading was
forecast to rise to 46.4.
France's private sector contracted on renewed decrease in new
orders. The headline HCOB flash composite output index fell
unexpectedly to 48.2 in June from 48.9 in May. The score was seen
at 49.5.
The flash services PMI posted 48.8, down from 49.3 in the prior
month. The reading was expected to rise to 50.0. The manufacturing
PMI slid to 45.3 from 46.4 in April. The expected reading was
46.8.
In the European trading today, the euro fell to 0.8443 against
the pound, from an early 9-day high of 0.8467. The EUR/GBP pair may
find support near the 0.82 region.
In economic news, the official data showed that the U.K. retail
sales volume grew 2.9 percent on a monthly basis in May, offsetting
the 1.8 percent fall in April.
Also, British consumer sentiment index advanced to -14 in May
from -17 in April, monthly survey data from the market research
group GfK showed.
Against the Swiss franc, the euro dropped to 0.9506 from an
early high of 0.9560. The EUR/CHF is likely to find support near
the 0.93 level.
Moving away from an early near 3-week high of 170.45 against the
yen, the euro slipped to a 2-day low of 169.33. On the downside,
EUR/JPY is likely to find its support around the 167.00 level.
Against the U.S., Australia, the New Zealand and the Canadian
dollars, the euro slid to a 1-week low of 1.0671, a 1-year low of
1.6046, a 4-day low of 1.7435 and nearly a 2-month low of 1.4614,
respectively. If the euro extends its downtrend, it is likely to
find support around 1.05 against the greenback, 1.59 against the
aussie, 1.73 against the kiwi and 1.43 against the loonie.
Looking ahead, Canada retail sales data for April, raw material
prices for May, U.S. S&P Global flash manufacturing PMI for
June, U.S. Consumer Board's leading index for May, U.S. existing
homes sales for May and U.S. EIA baker Hughes oil rig count data
are slated for release in the New York session.
Euro vs US Dollar (FX:EURUSD)
Forex Chart
Von Sep 2024 bis Okt 2024
Euro vs US Dollar (FX:EURUSD)
Forex Chart
Von Okt 2023 bis Okt 2024