Forex Pros – The euro extended losses against the U.S. dollar on Thursday, dropping to a fresh three-day low 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/USD hit 1.4212 during European early afternoon trade, the pair’s lowest since June 20; the pair subsequently consolidated at 1.4223, tumbling 0.92%.
The pair was likely to find support at 1.4126, the low of June 17 and resistance at 1.4422, the high of June 21.
Earlier in the day, 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 lower against the pound, with EUR/GBP shedding 0.35% to hit 0.8900.
Later Thursday, European leaders were to hold the first day of a two-day economic summit in Brussels. Meanwhile, the U.S. was to publish government data on initial jobless claims, as well as official data on new home sales.
ForexPros.com
