Forex Pros – The euro was lower against the pound on Thursday, as concerns over Greece’s debt crisis continued to weigh and after data showed that private sector activity in the euro zone grew at its slowest rate in more than a year-and-a-half in June.
EUR/GBP hit 0.8893 during European morning trade, the daily low; the pair subsequently consolidated at 0.8907, shedding 0.25%.
The pair was likely to find support at 0.8844, Wednesday’s low and resistance at 0.8952, Wednesday’s high and a two-week high.
European Central Bank President Jean-Claude Trichet said late Wednesday that risk signals for financial stability in the euro zone were flashing “red” and that the debt crisis was threatening to infect European lenders.
Earlier Thursday, data showed that Germany and France were the only euro zone members to register growth in private-sector activity in June, with most of the other 15 members experiencing a contraction for the first time since November 2009.
Markit said that its preliminary euro zone manufacturing purchasing managers index fell to a seasonally adjusted 52.0 in June, down from 54.6 in May. Analysts had expected the index to decline to 53.8 in June. A reading above 50 indicates expansion.
The euro zone services PMI fell to 56.7 from 62.5 in May, outstripping expectations for a decline to 61.1.
The euro was also sharply lower against the U.S. dollar, with EUR/USD shedding 0.75% to hit 1.4247.
On Wednesday, the minutes of the Bank of England’s June policy meeting showed that policymakers believed the growth outlook had weakened and some believed additional monetary stimulus may be necessary.
ForexPros.com
