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Forex - EUR/USD trims losses but remains under pressure

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Investing.com -

Investing.com - The euro trimmed losses against the U.S. dollar on Monday, as the release of downbeat U.S. manufacturing data dampened demand for the greenback, while expectations for further easing by the European Central Bank continued to weigh on the single currency.

EUR/USD pulled away from 1.3594, the pair's lowest since May 29, to hit 1.3619 during U.S. morning trade, still down 0.09%.

In a report, the Institute of Supply Management said its manufacturing purchasing managers' index ticked down to 53.2 in May, from a reading of 54.9 the previous month, confouding expectations for a rise to 55.5.

Meanwhile, the single currency remained under pressure after data on Friday showing that the annual rate of inflation in Italy and Spain slowed in May added to expectations that the ECB will take steps to tackle low consumer price growth, which is threatening the fragile recovery in the single currency bloc.

Earlier Monday, official data showed that German consumer price inflation accelerated at an annualized rate of 0.9% last month, down from 1.3% in April. Analysts had expected German consumer prices to rise by 1.1% in May.

Separately, Markit research group said that Spain's manufacturing PMI rose to 52.9 this month, from 52.7 in May, while Italy's manufacturing PMI slipped to 53.2 in June, from a reading of 54.0.

The euro was lower against the pound, with EUR/GBP slipping 0.15% to 0.8124.

Also Monday, Markit said the U.K. manufacturing PMI ticked down to 57.0 in June, from a reading of 57.3 the previous month, in line with expectations.

A separate report showed that net lending to individuals in the U.K. rose by £2.4 billion in April, below expectations for a £2.7 billion increase, after a downwardly revised £2.8 billion gain in March.

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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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