Euro Slides After Eurozone Factory Growth Lowest Since 2016
02 January 2019 - 4:59PM
RTTF2
The euro drifted lower against its major opponents in the
European session on Wednesday, after a data showed that Eurozone's
private sector growth slowed in December to the lowest level since
February 2016.
Survey data from IHS Markit showed that the final Eurozone
manufacturing PMI fell to 51.4 from 51.8 in November. The score
came in line with the flash estimate.
In accordance with the latest trend, underlying the slowdown in
overall growth was further softness in new orders, the survey
showed.
Separate data showed that German manufacturing activity expanded
in December at the slowest pace since March 2016.
The final manufacturing PMI slipped to 51.5 in December from
51.8 in November. The reading matched the flash estimate.
Sentiment deteriorated as disappointing manufacturing data from
China added to investor concerns over slowing global growth.
A private survey showed that China's manufacturing sector
contracted for the first time in 19 months in December, due to
ongoing trade frictions between the world's two largest economies.
The Caixin/Markit manufacturing PMI dropped to 49.7 from 50.2 in
November.
The currency traded mixed against its major counterparts in the
Asian session. While it rose against the greenback and the pound,
it held steady against the franc. Against the yen, it dropped.
The euro depreciated to 124.49 against the Japanese yen, a level
unseen since June 2017. The euro is seen finding support around the
122.00 level.
Following an advance to near a 2-month high of 1.1497 against
the greenback at 1:10 am ET, the euro reversed direction and fell
to 1.1429. The euro is poised to find support around the 1.13
mark.
The single currency declined to a 5-day low of 1.1226 against
the franc, from a high of 1.1271 hit at 2:00 am ET. The euro is
likely to test support around the 1.10 mark.
After rising to near a 2-month high of 1.7116 against the kiwi
at 2:10 am ET, the euro retreated with pair trading at 1.7038. If
the euro declines further, 1.68 is possibly seen as its next
support level.
The euro was trading lower at 1.5570 against the loonie, down
from a 5-day high of 1.5635 touched at 1:30 am ET. Next key support
for the euro is possibly seen around the 1.53 region.
The common currency pulled down to 1.6282 against the aussie,
from near a 3-month high of 1.6342 hit at 2:10 am ET. On the
downside, 1.61 is likely seen as the next support level for the
euro.
On the flip side, the euro was firmer at 0.9014 against the
pound, after having dropped to 0.8983 at 12:15 am ET. Further
uptrend may take the euro to a resistance around the 0.92
region.
Looking ahead, U.S. advance goods trade balance and wholesale
inventories for November and Markit's final manufacturing PMI for
December are scheduled for release in the New York session.
Euro vs AUD (FX:EURAUD)
Forex Chart
From Mar 2024 to Apr 2024
Euro vs AUD (FX:EURAUD)
Forex Chart
From Apr 2023 to Apr 2024