The euro slipped to a multi-week low in early dealing versus the sterling Wednesday, but steadied following the release of better-than-expected PMI data from the Eurozone. With equities markets looking for direction, the euro was uncertain versus the dollar and yen.
The euro failed to build upon its gains from earlier in the week versus the dollar. The European currency moved near 1.3310 in mid-day trading on Wednesday after reaching a monthly high of 1.3436 the day before.
In the U.S., the Automatic Data Processing report showed that non-farm private employment fell by 491,000 jobs in April following a revised decrease of 708,000 jobs in March. Economists had expected a decrease of 645,000 jobs compared to the loss of 742,000 jobs originally reported for the previous month.
The euro was stable versus the sterling after hitting a seven-week low of .8805. The European currency has been trending lower for about two weeks.
A report from Lloyds Banking Group Plc's Halifax division showed that UK house prices declined 1.7% in April, following a 1.9% fall in the previous month. Economists had expected a drop of 1% in house prices.
The euro erased a good portion of its overnight losses to the yen and moved near 131.25 in mid-day trading. The single currency had slipped as low as 129.85 shortly after midnight ET.
Data released by the Eurostat showed that Eurozone retail sales fell a record 4.2% year-on-year in March. Economists had expected a 2.6% fall after a 4% decline in February. On a monthly basis, sales were down 0.6% after a revised 0.3% contraction in February.
The purchasing managers' index for the Eurozone service sector rose to 43.8 in April from 40.9 recorded in March and from a flash reading of 43.1, reports said citing data released by the Markit Economics. Economists had expected the index to match the flash estimate. A PMI reading below 50 suggests contraction in the sector. The composite index, which include the manufacturing PMI and the service sector PMI stood at 41.1, up from 40.5 initially estimated and the previous month's 43.
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