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Forex - EUR/USD falls to session lows after euro zone data

Posted: 12/2/2013 6:14:00 AM
Referenced Stocks: - The euro fell to session lows against the dollar on Monday after euro zone manufacturing data indicated that the economic recovery in the region remains weak.

EUR/USD slid 0.33% to 1.3544, the lowest since November 26, from 1.3590 on Friday.

The pair was likely to find support at 1.3400 and resistance at 1.3615, the session high.

Revised data on Monday showed that the bloc's manufacturing purchasing managers' index rose to a two year high of 51.6 last month from October's 51.3, slightly higher than a preliminary estimate of 51.5.

The report said rising levels of production and fuller order books
failed to alter the trend in employment, with job cuts reported for the twenty-second straight month.

Meanwhile, Spain's manufacturing sector contracted for the first time since July last month, while the French manufacturing sector contracted for the 21st straight month.

The Spanish PMI fell to 48.6 from 50.9 in October, led lower by weaker orders and output.

The French index fell to 48.4 from 49.1 in October, the lowest level since June.

Elsewhere, the euro dropped to the lowest since January against sterling, with EUR/GBP down 0.465 to 0.8261.

The pound strengthened after data showed that activity in the U.K. manufacturing sector expanded at the fastest rate in 33 months in November.

The U.K. manufacturing purchasing managers' index rose to 58.4, the highest level since February 2011, from an upwardly revised 56.5 in October.

Analysts had expected the manufacturing PMI to tick down to 56.0.
The new orders component of the index jumped to 64.6, the highest in almost 20 years, from 61.3 in October.

Also Monday, the final reading of China's HSBC manufacturing PMI came in at 50.8 for November, slightly above forecasts for 50.5, and beating the flash estimate of 50.4. The index was down slightly from October's final reading of 50.9. offers an extensive set of professional tools for the financial markets.
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