Forexpros — The euro extended losses against the U.S. dollar on Thursday, falling to a two-week low after data showed that manufacturing activity in the region contracted in August and as concerns over the region’s debt crisis festered.
EUR/USD hit 1.4262 during European early afternoon trade, the pair’s lowest since August 19; the pair subsequently consolidated at 1.4275, shedding 0.66%.
The pair was likely to find support at 1.4161, the low of August 10 and resistance at 1.4385, the days high.
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.
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.
Meanwhile, an auction of Spanish government debt met with lukewarm demand earlier, adding to concerns over the ongoing sovereign debt crisis in the single currency bloc.
The euro was also lower against the pound, with EUR/GBP shedding 0.41% to hit 0.8809.
Later in the day, the U.S. was to publish its closely watched weekly report on initial jobless claims, while the U.S. Institute of Supply Management was to produce data on manufacturing growth.
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