Euro Falls On Weak Eurozone Manufacturing PMI Data

(RTTNews) - The euro weakened against other major currencies in the European session on Friday, after data showed that the euro area manufacturing activity contracted the most since March 2025 with production levels falling for the first time since last February.

Data from S&P Global showed that the Eurozone HCOB manufacturing Purchasing Managers' Index declined to 48.8 in December from 49.6 in November. The flash score was 49.2.

The reading fell further below the 50.0 no-change mark indicating a sharper deterioration in factory operating conditions. The final U.S. S&P Manufacturing PMI report is currently being examined by investors, which could provide the US dollar a boost.

In other economic news, data from the European Central Bank showed that Eurozone bank lending increased at a faster pace in November as loans to households and businesses increased further. Adjusted loans to the private sector climbed 3.4 percent year-on-year, following October's 3.0 percent increase.

Data showed that the broad monetary aggregate M3 grew 3.0 percent in November, faster than the 2.8 percent increase posted in October. Meanwhile, annual growth in M1 softened to 5.0 percent from 5.2 percent.

On Thursday, January 1, Bulgaria, the EU's poorest member, joined the eurozone as its 21st member, moving it one step closer to complete European integration. This occurs in the midst of significant domestic resistance, particularly from pro-Russian groups, and political instability.

In the European trading today, the euro fell to nearly a 2-week low of 1.1713 against the U.S. dollar and a 2-day low of 183.72 against the yen, from an early 3-day high of 1.1765 and a 4-day high of 184.43, respectively. If the euro extends its downtrend, it is likely to find support around 1.16 against the greenback and 180.00 against the yen.

Against the Swiss franc and the pound, the euro slid to 3-day lows of 0.9295 and 0.8708 from early 2-day highs of 0.9316 and 0.8726, respectively. The euro may test support near 0.91 against the franc and 0.86 against the pound.

Looking ahead, Canada and U.S. S&P Global manufacturing PMI for December are due to be released in the New York session.