EUR/USD Drops On China PMI Data, Euro Crisis Become More Worse On Spain Worries

EUR/USD Drops On China PMI Data, Euro Crisis Become More Worse On Spain Worries

One more worst day for euro, showed negative movement against dollar on Tuesday, but remained somewhat supported after better than anticipated manufacturing data out of China assisted bolster risk appetite.

The more required pair EUR/USD touched 1.2099 during late Asian trade, the session was low; the pair subsequently consolidated at 1.2107, dropped 0.07%.

Investor sentiment create support after a data showing that China’s HSBC Holdings plc (NYSE:HBC) buying managers index increased to 49.5 in July, its peak level since February, from a final reading of 48.2 in June.

Whereas the index remained low the 50 level which indicates contraction, the development from the earlier month eased concerns over a hold back in the world’s second biggest economy.

Other than the euro remained under pressure among concerns that Spain will be the second euro zone member to need a full-scale bailout following two regional authorities requested financial assistance from Madrid.

Sentiment was also punch following rating’s agency Moody’s Corporation (NYSE:MCO) reduced its outlook on Germany to negative from stable overnight.

As the early trades euro was hit a 12-year trough against the yen, with EUR/JPY dropped 0.18 percent to 94.81 and was inside striking distance of a three-and-a-half year lesser against the pound, with EUR/GBP dropping 0.09 percent to 0.7806.
Meanwhile greenback, was dropped against the pound, with GBP/USD surged 0.09 percent at 1.5521.

The dollar was dropped against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.05% at 1.

 EUR/USD Drops On China PMI Data, Euro Crisis Become More Worse On Spain Worries

Data Prospects

Later Tuesday, the euro zone published preliminary data on manufacturing and service sector activity, whereas Germany and France were to declared individual reports.

The US was also to declared preliminary data on manufacturing activity, although Federal Reserve Chairman Ben Bernanke was to speak.

 

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