Euro and pound lower vs. dollar after Markit report

Euro and pound lower vs. dollar after Markit report

1 October 2014, 12:04

The euro fell to session lows against the dollar on Wednesday, re-approaching a two-year trough after data showed that factory activity in the euro area slowed to a 14-month low in September. The pound also fell against the greenback today, weighed by data showing that manufacturing activity particularly in the U.K. expanded at the slowest pace in 17 months in September.

EUR/USD touched lows of 1.2585, not far from Tuesday’s two year trough of 1.2570, and was last down 0.22% to 1.2603.

Theplunge  in the euro came after research group Markit reported that the final reading of the euro zone’s manufacturing purchasing managers index ticked down to 50.3 from 50.5 in August.

GBP/USD hit 1.6162 during European morning trade, the pair's lowest since September 16; the pair subsequently consolidated at 1.6171, sliding 0.26%.

Cable was likely to find support at 1.6050, the low of September 10 and resistance at 1.6288, Tuesday's high.

Markit research group said that the U.K. manufacturing purchasing managers' index fell to 51.6 in September from a reading of 52.2 in August, whose figure was downwardly revised from a previously estimated reading of 52.5.

Analysts had expected the index to rise to 52.5.

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