Euro Declines On Growth Concerns

(RTTNews) - The euro weakened against its most major counterparts in the European session on Tuesday, as weak PMI readings from Europe and China fueled concerns about slowing global growth.

Final data from S&P Global showed that the euro area private sector economy contracted the most in nearly three years in August.

The HCOB composite output index fell to 46.7 in August from 48.6 in July. The initial score was 47.0 for August.

The services Purchasing Managers' Index, or PMI, posted 47.9, down from 50.9 in July. Moreover, the pace of decline was the steepest since February 2021. The score was also below the initial estimate of 48.3.

China's services activity expanded at the slowest pace in eight months in August, a private-sector survey showed earlier today.

The euro touched 1.0716 against the greenback, its lowest level since June 8. The euro is seen finding support around the 1.06 area.

The euro declined to 0.9536 against the franc, from an early high of 0.9552. The euro is likely to find support around the 0.94 level.

The euro eased to 1.8246 against the kiwi and 1.6819 against the aussie, from an early 5-day high of 1.8319 and near a 2-week high of 1.6894, respectively. The next possible support for the currency is seen around 1.76 against the kiwi and 1.65 against the aussie.

The euro dropped to a multi-week low of 1.4609 against the loonie, reversing from a previous 4-day high of 1.4702. The currency is poised to find support around the 1.44 level.

The euro fell to near a 2-week low of 0.8540 against the pound, down from a prior 5-day high of 0.8576. The currency may face support around the 0.82 level.

In contrast, the euro rebounded to 158.28 against the yen, heading to pierce its previous 5-day high of 158.40. If the currency rises further, 160.00 is likely seen as its next upside target level.