RTTNews - The euro saw weakness against the dollar and yen as lower global stocks reduced the appeal for riskier currencies. A disappointing employment report also weighed on the 16-member currency.
Eurozone unemployment rose to a ten-year high in July as companies continued with headcount reductions to cope with the current economic situation. Meanwhile, Germany recorded an unexpected fall in the number of people out of jobs.
Meanwhile, German manufacturing sector improved more than initially estimated in August. And French manufacturing sector continued to improve in August, rising more than initially estimated, a report from the CDAF and Markit Economics said on Tuesday.
The euro fell to a six-day low near 1.4225 against the dollar. The European currency rallied as high as 1.4405 last week, its best level since early August.
The euro was little-changed amid choppy trading with the pound, moving near 0.8800. The European currency fell below 0.8770 but later climbed above 0.8830.
In the UK, the manufacturing Purchasing Managers' Index dropped to 49.7 in August from 50.2 in the previous month. The July reading was revised from 50.8 reported initially.
The euro fell against the yen and tested a six-week low bear 1.3240. If the common currency falls below 1.3214 it will be at its lowest level since mid-July.
In the Eurozone, the seasonally adjusted jobless rate rose to 9.5% in July from 9.4% in June, data released by the Eurostat showed Tuesday. That was in line with economists' expectations and the highest rate since May 1999. It was 7.5% a year ago. The seasonally adjusted number of unemployed rose 167,000 to 15.09 million in July.
Employment levels at the financial service providers of the UK, Germany and France is unlikely to return to the level seen in 2008 before 2013, according to a new research by the City of London.
The Markit/BME Manufacturing Purchasing Managers' Index or PMI rose to 49.2 in August from 45.7 in July. The reading was also above the flash estimate of 49. This was the highest for twelve months, but still below the neutral 50.0 mark.
In France, the Purchasing Managers' Index increased to 50.8 in August from 48.1 in the previous month. The index also stood above the flash estimate of 50.2.
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