CANBERA (Alliance News) - The euro eased from early highs against most major currencies in the European session on Monday, as European stocks weakened after weak PMI reading from Germany and on tensions in Ukraine.
The preliminary survey data from Markit Economics showed that German private sector growth slowed in March, with flash manufacturing PMI reaching 53.8 points. This is down from 54.8 in February and below the expected reading of 54.5.
The flash services activity index slipped more-than-expected to 54.0 from 55.9 in February. The score was forecast to fall to 55.5.
The euro area economy expanded for the ninth consecutive month in March, but the rate of growth slowed marginally, separate data showed today.
The data from Markit Economics showed that Eurozone composite output index came in at 53.2 in March. The score was slightly lower than February's 32-month high of 53.3 and the expected level of 53.1.
The flash services PMI fell to 52.4 from 52.6 in February, when it was expected to drop to 52.5. Similarly, the manufacturing PMI slid to 53.0, in line with expectations, from 53.2 in February.
Weak China manufacturing PMI and ongoing problems in Ukraine hurt sentiment. Russian troops attacked Crimean naval base at Feodosia and took control over it, unarming Ukrainian soldiers. Two other military bases were stormed and captured Friday.
Pulling away from an early 4-day high of 1.3827 against the greenback, the euro fell to 1.3780. Further weakness may take the euro to a support around the 1.37 region.
The euro slipped to a 4-day low of 0.8357 against the pound, following a multi-day high of 0.8380 hit in early Asian deals. The next possible downside target for the euro is seen around the 0.825 area.
Having climbed to a 5-day high of 141.89 against the yen earlier, the euro pared gains to 141.12. If the euro extends decline, it may eye downside target at the 140.00 zone.
The euro slipped to 1.5132 against the aussie, a level unseen since February 18. Against the kiwi and the loonie, the euro pared gains to 1.6144 and 1.5470, off early 4-day highs of 1.6235 and 1.5543, respectively. The euro may find downside target around 1.50 against the aussie, 1.60 against the kiwi and 1.53 against the loonie.
But the euro stablised against the franc, after advancing to a 4-day high of 1.2203 during prior deals. The pair was worth 1.2178 at last week's close.
