Investing.com

Investing.com - The euro slipped against the U.S. dollar on Tuesday, after the release of globally tepid economic reports from the euro zone, but the single currency still remained close to six-week highs.



EUR/USD hit 1.3678 during European morning trade, the session low; the pair subsequently consolidated at 1.3682, down 0.08%.



The pair was likely to find support at 1.3640, Monday''s low and resistance at 1.3723, the high of May 21.



Official data showed that the unemployment rate in the euro remained unchanged at 11.6% in May, confounding expectations for an uptick to 11.7%.



In Germany, the number of unemployed people rose by 9,000 in May, disappointing expectations for a 10,000 decline. The number of unemployed people for April was revised to an increase of 25,000 from a previously estimated rise of 24,000.



Earlier Tuesday, data indicated that the manufacturing recovery in the euro zone is losing momentum.



Markit''s euro zone manufacturing purchasing managers'' index dipped to a seven-month low of 51.8, down from 52.2 in May. Growth in the German factory sector slowed to an eight month low of 52.0, while the French manufacturing PMI fell to a six-month low of 48.2.



Meanwhile, the greenback remained under pressure after data last week showing a 2.9% economic contraction in the first quarter bolstered expectations that the Federal Reserve will keep rates on hold for an extended period.



The euro was lower against the pound, with EUR/GBP slipping 0.20% to 0.7988.



In the U.K., Markit said the U.K. manufacturing PMI rose to 57.5 last month, up from 57.0 in May. Analysts had expected the index to tick down to 56.8.



The report indicated that the U.K. economy continued to grow at a strong pace in the second quarter, fuelling expectations that the deepening recovery will prompt the Bank of England to raise interest rates before then end of this year.





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