EURO SLUMPS AFTER WEAK DATA, BREAKS UNDER EMA 100
DATE: 02/05/2012
Euro slipped sharply today following an array of poor manufacturing and employment data. The single currency had edged higher in the last week, topping highs of 1.3283 yesterday, its best level in nearly one month against the US dollar but the gains were arrested after the US manufacturing sector grew at its best level in 10 months. Worries pertaining to a potential presidential change in France also had their effect.
The currency gave up the 1.3200 handle today after euro zone's manufacturing sector contracted at the sharpest pace in almost three years in April, indicating that the region's economy is likely to face tough times in near term. The drop in manufacturing activity was spread across the euro zone, but steepest in Greece, according to the latest Markit Economics' purchasing managers index data.
Losses extended for Euro after another piece of data revealed that the seasonally adjusted unemployment rate across the 17 nations that use the euro rose to 10.9% in March from 10.8% in February. The number of unemployed workers across the region rose by 169,000 to a total of 17.365 million, Eurostat noted. These are the highest levels in nearly 12 years or fresh Euro area peaks.
Euro's break under 1.3200 extended till 1.3133 before a mild up tick was witnessed in the currency. In technical terms, the break under 100 day exponential moving average (EMA) has worked against the single currency as the response of the market participants has been very quick once the Euro/US Dollar pair gave up 1.3234 mark.
The currency gave up the 1.3200 handle today after euro zone's manufacturing sector contracted at the sharpest pace in almost three years in April, indicating that the region's economy is likely to face tough times in near term. The drop in manufacturing activity was spread across the euro zone, but steepest in Greece, according to the latest Markit Economics' purchasing managers index data.
Losses extended for Euro after another piece of data revealed that the seasonally adjusted unemployment rate across the 17 nations that use the euro rose to 10.9% in March from 10.8% in February. The number of unemployed workers across the region rose by 169,000 to a total of 17.365 million, Eurostat noted. These are the highest levels in nearly 12 years or fresh Euro area peaks.
Euro's break under 1.3200 extended till 1.3133 before a mild up tick was witnessed in the currency. In technical terms, the break under 100 day exponential moving average (EMA) has worked against the single currency as the response of the market participants has been very quick once the Euro/US Dollar pair gave up 1.3234 mark.
POWERED BY: COMMODITY INSIGHTS
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