FOREX TradingCharts.com

Forex News: Euro Drops On Weak Eurozone PMI, German Factory

Euro Drops On Weak Eurozone PMI, German Factory Orders Data

05/06/2020 - 06:33:00 (RTTNews)

(RTTNews) - The euro depreciated against its major counterparts in the European session on Wednesday, as the euro area private sector activity shrank in April and German factory orders plunged in March, led by the severe disruption caused by the coronavirus pandemic.

Final survey results from IHS Markit showed that the composite output index slid to a new series low of 13.6 from March's 29.7. The flash score was 13.5.

The services Purchasing Managers' Index sank to 12.0 from 26.4 in the previous month.

Germany's composite output index posted a historic low of 17.4, down from the previous record of 35.0 in March and the flash reading of 17.1.

The services PMI came in at an all-time low 16.2 versus 31.7 in the previous month. The initial reading was 15.9.

Data from Destatis showed that German factory orders declined the most since the records began in 1991, due to the coronavirus pandemic.

Factory orders declined sharply by 15.6 percent on a monthly basis in March, much bigger than the 1.2 percent drop logged in February.

This was the biggest fall since January 1991. Economists had expected a 10 percent decrease.

The euro fell to near a 2-week low of 1.0791 against the greenback, 3-1/2-year low of 114.72 against the yen and a 6-day low of 1.5168 against the loonie, pulling away from its early highs of 1.0848, 115.60 and 1.5253, respectively. The next likely support for the euro is seen around 1.05 against the greenback, 111.00 against the yen and 1.48 against the loonie.

The euro depreciated to 6-day lows of 1.6778 against the aussie and 1.7827 against the kiwi, and held steady thereafter. The euro had ended Tuesday's trading session at 1.6843 against the aussie and 1.7900 against the kiwi.

The euro edged down to 1.0524 against the franc, from a high of 1.0550 hit at 5:00 pm ET. On the downside, 1.02 is possibly seen as the next support level for the euro.

In contrast, the euro rallied to 0.8734 against the pound. If the euro rises further, 0.90 is possibly seen as its next resistance level.

Survey data from IHS Markit showed that the UK construction sector contracted at the sharpest pace since the survey began in 1997 amid site closures due to the coronavirus, or covid-19, pandemic.

The IHS Markit/Chartered Institute of Procurement & Supply construction Purchasing Managers' Index fell to 8.2 in April from 39.3 in March. A score below 50 indicates contraction. The expected score was 22.0.

Looking ahead, U.S. ADP private payrolls data for April is due out at 8:15 am ET.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2020 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT FOREX and ECONOMIC NEWS STORIES


Euro Advances After ECB Decision (55 min(s), 27 sec(s) ago)
(RTTNews) - As expected, the European Central Bank maintained its refi rate at 0.00 percent and th ...Full Story»

Euro Mixed Ahead Of ECB Decision (49 min(s), 26 sec(s) ago)
(RTTNews) - The European Central Bank will deliver its interest rate decision at 7:45 am ET Thursd ...Full Story»

Euro Little Changed After Eurozone Retail Sales (10 min(s), 27 sec(s) ago)
(RTTNews) - At 5.00 am ET Thursday, Eurostat has published euro area retail sales data for April. ...Full Story»

Euro Mixed Ahead Of Eurozone Retail Sales (04 min(s), 26 sec(s) ago)
(RTTNews) - At 5.00 am ET Thursday, Eurostat publishes euro area retail sales data for April. Econ ...Full Story»

Dollar Advances On Rising U.S.-China Tensions (55 min(s), 26 sec(s) ago)
(RTTNews) - The U.S. dollar strengthened against its major rivals in the early European session on ...Full Story»

Franc Little Changed After Swiss CPI (40 min(s), 27 sec(s) ago)
(RTTNews) - At 2.30 am ET Thursday, the Federal Statistical Office has published Swiss consumer pr ...Full Story»

Franc Rises Vs Most Majors Ahead Of Swiss CPI (34 min(s), 26 sec(s) ago)
(RTTNews) - At 2.30 am ET Thursday, the Federal Statistical Office releases Swiss consumer prices ...Full Story»

Canadian Dollar Higher After BoC Holds Rate Steady (13 min(s), 27 sec(s) ago)
(RTTNews) - The Canadian dollar advanced against its most major counterparts in the New York sessi ...Full Story»

Search

FOREX NEWS

Euro Advances After ECB Decision

06/04/2020 - 07:48 AM (RTTNews)
(RTTNews) - As expected, the European Central Bank maintained its refi rate at 0.00 percent and th ...Full Story>>

Euro Mixed Ahead Of ECB Decision

06/04/2020 - 07:43 AM (RTTNews)
(RTTNews) - The European Central Bank will deliver its interest rate decision at 7:45 am ET Thursd ...Full Story>>

Euro Little Changed After Eurozone Retail Sales

06/04/2020 - 05:03 AM (RTTNews)
(RTTNews) - At 5.00 am ET Thursday, Eurostat has published euro area retail sales data for April. ...Full Story>>

Euro Mixed Ahead Of Eurozone Retail Sales

06/04/2020 - 04:57 AM (RTTNews)
(RTTNews) - At 5.00 am ET Thursday, Eurostat publishes euro area retail sales data for April. Econ ...Full Story>>

Dollar Advances On Rising U.S.-China Tensions

06/04/2020 - 04:50 AM (RTTNews)
(RTTNews) - The U.S. dollar strengthened against its major rivals in the early European session on ...Full Story>>
Copyright © 2020. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.