Forexpros — The euro extended losses against the pound on Thursday, falling to a five-day low after data showed that manufacturing activity in the euro zone slumped to its lowest level in two years in August.
EUR/GBP hit 0.8800 during European morning trade, the pair’s lowest since August 25; the pair subsequently consolidated at 0.8807, shedding 0.43%.
The pair was likely to find support at 0.8726, the low of August 24 and resistance at 0.8856, the days high.
A report earlier showed that the euro zone’s manufacturing purchasing managers’ index fell to it lowest level since August 2009 last month, dropping to 49.0 from a preliminary reading of 49.7.
Meanwhile, Germany’s manufacturing PMI slowed to its lowest level since September 2009, slumping to 50.9, well below an initial estimate of 52.0.
National PMI’s from Ireland, France, Italy, Spain and Greece also contracted.
The single currency was also weighed after an auction of Spanish government debt met with lukewarm demand earlier.
The euro was also lower against the U.S. dollar, with EUR/USD shedding 0.57% to hit 1.4288.
Also Thursday, data showed that manufacturing activity in the U.K. fell unexpectedly in August, dropping to the lowest level since May 2009.
The U.K. manufacturing PMI declined to a seasonally adjusted 49.0 in August, down from a revised 49.4 in July. Analysts had expected the manufacturing PMI to ease up to 49.5 in August.
Forexpros
