RTTN:Euro Slides After French Election And Weak PMI Reports
(RTTNews) - The euro fell against its most major counterparts on Monday following France's first-round of Presidential election and weak PMI reports from major European economies.
In the first round of the French Presidential Elections on Sunday, Socialist leader Francois Hollande won the most number of votes, pushing incumbent Nicolas Sarkozy to the second place, estimates show. Hollande and Conservative President Sarkozy will now go into a second run-off vote on 6th May.
In economic news, German private sector growth eased in April with activity reaching levels close to stagnation, a survey by Markit Economics revealed today.
The composite output index, that measures performance of both manufacturing and services, fell to a five-month low of 50.9 in April from 51.6 in March.
According to a flash estimate published by Markit Economics, Eurozone private sector activity declined further to a 5-month low in April.
The composite output index dropped unexpectedly to 47.4 in April from 49.1 in March. Economists were forecasting the reading to rise to 49.3.
The services Purchasing Managers' Index fell to 47.9 from 49.2 in March. Likewise, the manufacturing PMI came in at 46.0, down from 47.7 in the prior month. The services PMI was seen rising to 49.3 and the manufacturing indicator to 48.1.
The euro that closed Friday's deals at 1.3221 against the greenback and 0.8192 against the pound fell to 0.3136 and 0.8168, respectively. The next downside target level for euro is seen at 1.31 against the greenback and 0.81 against the pound.
Against the yen, the euro declined to a 5-day low of 106.38 with 105.5 seen as the next downside target level. The pair ended last week's deals at 107.74.
Looking ahead, Canada's wholesale sales data for February is due at 8:30 am ET.
