LSE: Euro Mixed After Eurozone Jobless Rate, PMI Report
BRUSSELS (Alliance News) - The euro came in mixed against the other major currencies in the European session on Tuesday, after reports on Eurozone jobless rate and final manufacturing PMI in June.
While the euro moved up against the greenback and yen, fell against the pound. Against the Swiss currency, the euro moved sideways.
The Eurozone unemployment rate remained unchanged in May, latest figures from Eurostat showed.
The jobless rate held steady at seasonally adjusted 11.6% in May after April's figure was revised down from 11.7%. Economists had forecast the unemployment rate to remain at 11.7%.
Eurozone manufacturing recovery slowed slightly more than initially estimated in June, final data from Markit Economics showed.
The final Purchasing Managers' Index for manufacturing dipped to a seven-month low of 51.8 in June from 52.2 in May and below the earlier flash estimate of 51.9.
Traders focus on the European Central Bank meeting due this week, to assess the impact of stimulus program introduced last month. Market participants do expect the bank to make any fresh moves, as it is likely to wait for new policy measures to take full effect.
The euro pared its early losses against the greenback and rose back to 1.3696 during early European deals. If the euro continues its uptrend, 1.374 is seen as its next possible upside target level. The pair was quoted at 1.3691 at yesterday's close.
The euro that reversed from an early low of 138.67 against the yen hit a 3-week high of 139.03. On the upside, 139.5 is seen as next resistance level for the euro. At Monday's close, the pair was trading at 138.71.
Easing from an early high of 0.8007 against the Sterling, the euro declined to an 8-day low of 0.7981, as the former was boosted by better-than-expected UK manufacturing PMI data. If the euro continues its downtrend, 0.79 is seen as its next support level. The euro-pound pair ended Monday's trading at 0.8002.
The UK manufacturing sector expanded at the second-highest pace in 40 months, survey results from Markit Economics showed today.
The headline Markit/Chartered Institute of Purchasing & Supply Purchasing Managers' Index for manufacturing rose unexpectedly to 57.5 in June from 57 in May.
The euro held in a tight range against the Swiss franc, with pair moving between 1.2146 and 1.2140.
Looking ahead, the US ISM manufacturing index for June and construction spending data for May are set for release in the New York session.