Euro Lower As Eurozone Private Sector Activity Slows

(RTTNews) - The euro was subdued on Friday, as PMI readings from Germany and Eurozone missed expectations in June, intensifying concerns about a slowdown in the economic growth.

Eurozone bond yields dropped after preliminary data revealed business activity growth in Europe slowed in June.

The region's flash composite Purchasing Managers' Index dropped to 50.3 in June from 52.8 in the previous month.

European shares fell as several central banks lifted interest rates further in their attempts to control inflation.

Central banks in the UK and Norway delivered super-sized rate hikes on Thursday, while Federal Reserve Chair Jerome Powell reiterated his hawkish message on interest rate hikes.

The euro fell to an 8-day low of 1.0844 against the greenback and a 1-week low of 0.9763 against the franc, reversing from its previous highs of 1.0959 and 0.9814, respectively. The currency may locate support around 1.06 against the greenback and 0.96 against the franc.

The euro dropped to 2-day lows of 155.05 against the yen and 0.8535 against the pound, down from its prior highs of 156.82 and 0.8607, respectively. The next possible support for the currency is seen around 150.00 against the yen and 0.84 against the pound.

The euro weakened to a fresh 2-week low of 1.4316 against the loonie and a 2-day low of 1.7663 against the kiwi, from an early high of 1.4424 and a fresh 3-week high of 1.7812, respectively. The currency is likely to face support around 1.42 against the loonie and 1.74 against the kiwi.

The euro retreated to 1.6209 against the aussie, off an early 3-week high of 1.6333. On the downside, 1.60 is possibly seen as its next support level.

Looking ahead, Canada manufacturing and wholesales preliminary data for May, U.S. flash PMI reports for June and U.S. Baker Hughes oil rig count data are slated for release in the New York session.

At 8:00 am ET, Federal Reserve Bank of Atlanta President Raphael Bostic will participate in conversation on relevant topics to the finance community and business before the University of Georgia Terry College of Business CFO Roundtable, in Atlanta, U.S.

45 minutes later, ECB board member Fabio Panetta will participate in a panel discussion on future of crypto at 22nd BIS Annual Conference on central banks, macro-financial stability and the future of the financial system in Basel, Switzerland.

At 1:40 pm ET, Federal Reserve Bank of Cleveland President Loretta Mester will give closing remarks before the Policy Summit 2023: Communities Thriving in a Changing Economy" conference hosted by the Federal Reserve Bank of Cleveland, in Cleveland, Ohio, U.S.