Breaking News

Euro broadly lower as PMI reports weigh

ForexSep 20, 2012 06:16AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
Investing.com - The euro was broadly lower against the other major currencies on Thursday, as a string of manufacturing and service sector activity data from the euro zone dented demand for the single currency, amid sustained global growth concerns.

During European early afternoon trade, the euro was lower against the U.S. dollar, with EUR/USD dropping 0.61% to 1.2969.

The euro remained under pressure after preliminary data showed that the euro zone’s manufacturing purchasing manufacturers' index rose more-than-expected in September to 46.0, from 45.1 the previous month, while the service sector PMI fell unexpectedly to 46.0, from 47.2.

A separate report showed that manufacturing activity in Germany contracted at the slowest rate in six months in September, while service sector activity grew modestly.

In France, manufacturing activity tumbled unexpectedly in September, dropping to a three-and-a-half year low led by a marked reduction in incoming new business.

Also Thursday, Spain’s Treasury sold EUR859 billion worth of 10-year government bonds at an average yield of 5.66%, down from 6.64% at a similar auction last month.

The single currency was also lower gainst the pound, with EUR/GBP declining 0.40% to 0.8012.

The pound found some support after official data showed that U.K. retail sales fell by a seasonally adjusted 0.2% in August, compared to expectations for a 0.4% decline. Retail sales rose by 0.3% in July.

The euro was lower against the yen and the Swiss franc, with EUR/JPY tumbling 0.80% to 101.45, EUR/CHF slipping 0.13% to 1.2087.

In Japan, official data showed that the trade deficit widened unexpectedly to JPY0.47 trillion in August, from a deficit of JPY0.37 trillion the previous month. Analysts had expected the trade balance to remain unchanged in August.

A separate report showed that Switzerland's trade surplus narrowed less-than-expected in August, falling to CHF1.733 billion from a surplus of CHF2.875 billion.

The shared currency was mixed against the Australian, New Zealand and Canadian dollars, with EUR/AUD adding 0.19% to 1.2475, EUR/NZD falling 0.24% to 1.5747 and EUR/CAD edging down 0.19% to trade at 1.2692.

The commodity-linked currencies were weighed by data earlier showing that China’s HSBC Flash Purchasing Managers Index rose slightly to 47.8 in September from a final reading of 47.6 in August, remaining in contraction territory for the 11th consecutive month.

Later in the day, the U.S. was to release its weekly government report on initial jobless claims, as well as an index of manufacturing activity in Philadelphia.

Euro broadly lower as PMI reports weigh

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Write your thoughts here
Replace the attached chart with a new chart ?
Post also to:
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email