The euro showed mixed trading against the other major currencies in the early European session on Monday, following the release of Eurozone PMI data in October.
Data from Markit showed that Eurozone manufacturing activity growth exceeded initial estimate in October. The Purchasing Managers’ Index for the manufacturing sector rose to 52.3 in October from 52 in September. The reading was above the flash score of 52.
Germany’s headline factory PMI slid to a 3-month low of 52.1 in October from 52.3 in September as production and employment growth slowed. The flash reading was 51.6.
The French manufacturing PMI remained unchanged at 50.6 in October. It was slightly below the flash score of 50.7. Output increased for second month.
With the Fed seriously considering a December rate hike, investors await U.S. jobs data due Friday for further direction.
Meanwhile, Greece’s banks need to raise more than 14 billion euros ($16 billion) in capital under the supervisors’ so-called “adverse scenario”, the European Central Bank said on Saturday after months of “stress testing”.
In the Asian session today, the euro held steady against its major rivals.
In the European trading, the euro fell to nearly a 2-1/2-month low of 0.7114 against the pound, from an early high of 0.7159. If the euro extends its downtrend, it is likely to find support around the 0.70 area.
The euro dropped to 1.1012 against the pound after the release of German PMI data, from an early high of 1.1049. The euro is likely to find support around the 1.08 region.
Against the yen and the Swiss franc, the euro advanced to 133.07 and 1.0893 from early highs of 132.62 and 1.0866, respectively. On the upside, 136.00 against the yen and 1.10 against the franc are seen as the next support levels for the euro.
Looking ahead, Canada and U.S manufacturing PMI reports for October and U.S. construction spending data for September are slated for release in the New York session.
At 12:00 pm ET, Federal Reserve Bank of San Francisco President John Williams will deliver opening remarks at the San Francisco Federal Reserve event.
The material has been provided by InstaForex Company – www.instaforex.com