The euro fell to a multi-day low against the pound in the early European session on Thursday, after data showed that Eurozone manufacturing activity grew at a slower pace as estimated in September.
Data from Markit showed that the Eurozone manufacturing Purchasing Managers’ Index fell to a five-month low of 52 in September from 52.3 in August. The reading came in line with flash estimate.
Germany’s final PMI dropped to 52.3 in September from 53.3 in August. The flash score was 52.5. Data signaled slowdown in new orders and production growth in September.
Output at French manufacturers increased for the first time in three months. The French PMI came in at 50.6, up from 48.3 in August. It was above the flash estimate of 50.4.
European Central Bank chief Mario Draghi will deliver a speech in Washington at 9.30 am ET. Investors await his speech to hear further about QE to help ward off deflation in the region and keep the economy on track.
International Monetary Fund Managing Director Christine Lagarde predicted moderate growth in advanced economies this year but said global growth will be disappointing and uneven amid the twin prospects of rising U.S. interest rates and slowing expansion in China.
In the Asian session today, the euro showed mixed performance against its major rivals.
In the early European trading, the euro fell 3-day low of 0.7356 against the pound, from an early high of 0.7389. If the euro extends its downtrend, it is likely to find support around the 0.72 area.
Data from the Chartered Institute of Procurement & Supply and Markit Economics showed that the British manufacturing activity expanded at the weakest pace in three months in September.
The seasonally adjusted Purchasing Managers’ Index, or PMI, fell slightly to 51.5 in September from 51.6 in August, which was revised up from 51.5. Economists had forecast the index to fall to 51.3.
Meanwhile, the euro rose to 1.0909 against the Swiss franc, from an early 8-day low of 1.0874, and held steady thereafter.
Data from the Credit Suisse showed that Switzerland’s manufacturing sector contracted in September after rebounding a month ago. The procure.ch Purchasing Managers’ Index fell to 49.5 from 52.2 in August. It was forecast to drop marginally to 51.8.
Against the yen, the euro advanced to 134.24, from an early low of 133.78, and held steady thereafter.
Data from Nikkei revealed that the manufacturing sector in Japan remained in expansion territory, with a final manufacturing PMI score of 51.0. That was up from last month’s preliminary score of 50.9, although it was down from the eight-month high reading of 51.7 in August.
The euro fell to 6-day low of 1.1135 against the U.S. dollar, from an early high of 1.1178 and held steady thereafter.
Looking ahead, PMI reports for September from U.S. and Canada, U.S. weekly jobless claims for the week ended September 26 and U.S. construction spending data for August are slated for release in the New York session.
At 9:30 am ET, European Central Bank chief Mario Draghi will deliver a speech on the occasion of the awarding of the Atlantic Council Global Citizens Award in Washington.
Subsequently, at 2:30 pm ET, Federal Reserve Bank of San Francisco President John Williams is expected to speak about the economic outlook in Salt Lake City, U.S.
The material has been provided by InstaForex Company – www.instaforex.com