The euro and the pound slipped against the U.S. dollar and the Japanese yen after the release of worse than expected euro-area manufacturing and services figures in addition to U.K. retail sales report.
Euro area manufacturing contracted again in March, according to PMI indicator, as the advanced reading came in at 47.7 from 49.0 in February, lower than estimates of 49.5. Services sector also saw a contraction of 48.7 compared with 48.8 last month and median estimates of 49.2. Accordingly, PMI composite index showed a contraction of 48.7 from a prior of 49.3, below projections of 49.6.
Other data from the euro area released today showed that industrial new orders dropped 3.3% in January compared with a revised of -0.4%.
Although debt woes eased after the approval of Greece’s second bailout, yet still the euro area needs several financial and economic reforms to get on the right track, according to Fed Chairman Ben Bernanke comments this week.
Concerning the EUR/USD , the pair slipped for the third straight session to trade around 1.3160, recording a high of 1.3254 a low of 1.3131.The suggested trading range for today is among key support at 1.3025 and key resistance at 1.3460.
On the other hand, the dollar index, which tracks the dollar movements versus a basket of major currencies, edged to high of 79.92 compared with the day's opening level of 79.59 ahead of the release of U.S. jobless claims and leading indicators reports which are due later in the day.
By taking a look at the USD/JPY pair, it dropped on the daily charts on bearishness in markets after downbeat private report which showed that China’s manufacturing dropped for a fifth month in March. The trading range for today is among key support at 81.25 and key resistance now at 85.00.
Moving to the British pound versus dollar, it dropped to trade 1.5800 around after a report showing that U.K. retail sales with auto fuel slipped 0.8% in February from a prior 0.9% advance in January, revised down to 0.3%, compared with estimates of -0.5%.
So far, the pair has recorded a high of 1.5891 and a low of 1.5768, while the trading range for today is among key support at 1.5640 and key resistance at 1.6075.
