Euro Falls As German, French Manufacturing Sectors Shrink Further
22 Marzo 2019 - 8:08AM
RTTF2
The euro slipped against its major counterparts in the European
session on Friday, as the French and German manufacturing
activities contracted steeply in March, reflected by headwinds
arising from Brexit talks, U.S.-China trade dispute and soft global
demand.
Preliminary survey data from IHS Markit showed German flash
manufacturing PMI fell to a 79-month low of 44.7 from 47.6 in
February. Economists had forecast a reading of 48.0.
The flash Composite Purchasing Managers' Index, or PMI, dropped
to a 69-month low of 51.5 from 52.8 in the previous month.
Economists had forecast a score of 52.8.
The flash services PMI eased to a 2-month low of 54.9 from 55.3
in February. Economists were looking for a score of 54.8.
In France, the Composite PMI dropped to a 2-month low of 48.7
from February's 50.4. Economists had predicted a rise to 50.7.
The French services PMI fell to a 2-month low of 48.7 in March
from 50.2 in February. Economists had expected a reading of
50.6.
The manufacturing PMI slipped to a 3-month low of 48.8 in March
from 51.0 in the previous month. Economists were looking for a
score of 51.4.
European shares also fell as weak euro zone data rekindled
growth worries.
Traders remained focused on Brexit developments as well as the
next round of U.S.-China trade talks beginning next week, following
a series of conflicting reports over the progress of
negotiations.
The currency held steady against its major counterparts in the
Asian session, with the exception of the pound.
The euro declined to a 9-day low of 1.1289 against the greenback
and a 2-1/2-month low of 1.1232 against the franc, from its early
highs of 1.1391 and 1.1298, respectively. Next key support for the
euro is possibly seen around 1.11 against the greenback and 1.09
against the franc.
Reversing from its previous highs of 126.18 against the yen and
0.8684 against the pound, the euro weakened to an 11-day low of
124.78 and a 2-day low of 0.8614, respectively. On the downside,
122.00 and 0.84 are likely seen as the next support levels for the
euro against the yen and the pound, respectively.
The single currency slipped to 10-day lows of 1.5917 against the
aussie and 1.6428 against the kiwi and a 3-day low of 1.5106
against the loonie, reversing from its early highs of 1.6021 and
1.6542 and more than a 2-week high of 1.5214, respectively. Should
the euro weakens further, 1.57, 1.62 and 1.50 are possibly seen as
its next support levels against the aussie, the kiwi and the
loonie, respectively.
Looking ahead, Canada retail sales for January and consumer
inflation for February, as well as U.S. existing home sales for
February, wholesale inventories for January and Markit's services
PMI for March will be out in the New York session.
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