The euro retreated from early highs against its major counterparts in the early European session on Wednesday, after data showed that the private sector growth in Germany and euro area eased slightly in September.
Data from Markit showed that the flash Eurozone services Purchasing Managers’ Index declined to 54 in September from 54.4 in the prior month. It was below the expected score of 54.2. The manufacturing PMI fell to 52, in line with forecast, from 52.3 in August.
The composite output index dropped to 53.9 from 54.3 in August. It was expected to fall to 54.
Separate data showed that Germany’s private sector growth slowed slightly in September. The manufacturing PMI slid to 52.5 from 53.3 a month ago. It was expected to fall to 52.6.
The composite output index fell to 54.3 in September from 55 in August. Also, the services Purchasing Managers’ Index fell to 54.3 in September from 54.9 in August. The expected score was 54.5.
Meanwhile, the currency rose earlier as the French PMI rose more-than-expected in September.
Data from Markit showed the French private sector growth improved in September as both manufacturing and services expanded from prior month. The manufacturing sector expanded unexpectedly with the Purchasing Managers’ Index improving to 50.4 from 48.3 in the prior month. The expected score was 48.6. At the same time, the services PMI advanced to 51.2 from 50.6 a month ago. It was forecast to rise to 51.
The flash composite output index rose to 51.4 in September from 50.2 in August. Private sector output expanded for the eighth successive month.
In the Asian session today, the euro held steady against the pound, the Swiss franc and the U.S. dollar. Meanwhile, it fell against the yen.
In the European trading, the euro fell to a 2-week low of 1.4726 against the Canadian dollar, from an early high of 1.4806. The euro may test support near the 1.43 region.
Against the pound, the euro dropped to 0.7238 from an early 5-day high of 0.7284. The euro is likely to find support around the 0.71 area.
Pulling away from early highs of 1.1154 against the U.S. dollar and 133.89 against the yen, the euro slipped to 1.1108 and 133.51, respectively. This may be compared to an early near 3-week low of 1.1105 against the greenback and more than a 2-week low of 133.16 against the yen. If the euro extends its downtrend, it is likely to find support around 1.09 against the greenback and 132.00 against the yen.
Against the Swiss franc, the euro edged down to 1.0849 from an early high of 1.0874. On the downside, 1.07 is seen as the next support level for the euro.
Against the Australian and the New Zealand dollars, the euro edged down to 1.5756 and 1.7690 from an early 5-day high of 1.5863 and a 2-day high of 1.7799, respectively. The euro may test support near 1.51 against the aussie and 1.70 against the kiwi.
Looking ahead, Canada retail sales data for July, flash U.S. manufacturing PMI for September is slated for release in the New York session.
At 9:00 am ET, European Central Bank Chief Mario Draghi will testify on monetary policy before the European Parliament’s Economic and Monetary Committee in Brussels.
Around the same time, the Bank of England holds financial policy committee meeting in London.
At 12:00 pm ET, Bank of England Deputy Governor Ben Broadbent gives speech on the labour market in London.
Federal Reserve Bank of Atlanta President Dennis Lockhart is scheduled to speak before the Columbus Rotary Club at 12:30 pm ET.
All Japanese banks and financial markets will be closed in observance of Autumnal Equinox Day holiday.
The material has been provided by InstaForex Company – www.instaforex.com