Euro Falls Amid German And French PMI Data

Euro Falls Amid German And French PMI Data




The euro dropped against other major currencies in early European deals on Thursday amid flash results of Purchasing Managers' survey from Germany and France.
Germany's private sector expanded only at a marginal pace in March as output growth eased to a four-month low, flash data from Markit Economics showed. The flash Composite Output Index fell to 51.4 from 53.2 in February. Manufacturers and service providers both saw moderation in activity growth to three-month lows during March.
The Purchasing Managers' Index for the service sector came in at 51.8, down from 52.8 in February. The reading was below the consensus forecast of 51. The manufacturing PMI dropped unexpectedly to 48.1 from 50.2 in February. The expected reading was 53.1.
Meanwhile, French private sector contracted for the first time in four months in March, the flash results of a survey by Markit Economics revealed. The composite output index fell to a four-month low of 49 in March from 50.2 in February. Manufacturing activity shrank unexpectedly during the month. The purchasing managers' index or PMI for the manufacturing sector fell to a four-month low of 47.6 in March from 50 in February. Economists expected an increase to 50.2.
Meanwhile, service sector activity continued to stall with the services activity index remaining unchanged at the neutral mark of 50. Economists were expecting a modest increase in the reading to 50.3.
The euro is trading at a 3-day low of 1.3157 against the dollar with 1.310 seen as the next downside target level. At yesterday's New York session close, the euro-dollar pair was quoted at 1.3216.
Against the yen, the euro is trading at a 6-day low of 109.18, compared to yesterday's close of 110.20. The next downside target level for the euro-yen pair is seen at 108.0.

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