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Forex - EUR/USD little changed after upbeat ISM PMI

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Investing.com - The euro was little changed against the dollar on Tuesday after data showed that the U.S. manufacturing sector expanded more rapidly-than-expected in February.

EUR/USD hit 1.3016 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.3023, dipping 0.02%.

The pair was likely to find support at 1.2965, Friday's low and the pair's lowest since December 11 and resistance at 1.3100, Friday's high.

The Institute of Supply Management said its non-manufacturing purchasing manager's index rose to 56.0 from a reading of 55.2 in January.

Analysts had expected the index to tick down to 55.0 last month.

The euro hit session highs against the dollar earlier after data showed that Germany's services PMI rose to 54.7 in February, up from a preliminary reading of 54.1.

The final euro zone services PMI rose to 47.9 from a preliminary reading of 47.3.

Another report showed that euro zone retail sales rose 1.2% in January, well above expectations for a 0.2% gain.

But the single currency remained under pressure amid concerns that Italy will be unable to pass structural reforms and austerity measures as the country edged closer to fresh elections, following inconclusive elections last week.

Worries over the outlook for Italy, the euro zone's third largest economy, fuelled speculation over a possible rate cut by the European Central Bank in the coming months.

Elsewhere, the euro slid lower against the pound and the yen, with EUR/GBP slipping 0.13% to 0.8607 and EUR/JPY edging down 0.12% to 121.58.

The pound remained supported after data on Tuesday showed that the U.K. services PMI unexpectedly rose to a five-month high in February, allaying fears over a possible triple-dip recession.

The U.K. services PMI rose to 51.8 from 51.5 in January, against expectations for a decline to 51.0.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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