Investing.com - The euro remained slightly lower against the dollar on Monday after data showed that private sector in the euro zone’s largest economy Germany slowed in March.
EUR/USD touched lows of 1.3760 and was last down 0.12% to 1.3777, holding above last Thursday’s two-week lows of 1.3748.
The pair was likely to find support at 1.3748 and resistance at 1.3826, the session high.
The euro slipped after data showed that the preliminary reading of Germany’s manufacturing purchasing manager’s index fell to a four-month low of 53.8 this month, from a final reading of 54.8 in February and below forecasts of 54.6. The country’s services PMI declined to 54.0, from 55.9 last month.
The data offset a separate report showing a return to growth in the bloc’s second largest economy, France.
The French manufacturing PMI rose to 51.9 in March, from 49.7 last month, ahead of expectations for an uptick to 49.8. France’s services PMI rose to a 26-month high of 51.4 from 47.2 in February, well above forecasts for a reading of 47.5.
The upbeat French data signaled that the recovery in the euro area is broadening.
Across the currency bloc, the expansion in the manufacturing and service industries remained solid. The preliminary reading of the euro area’s composite PMI ticked down to 53.2, only slightly lower than February’s 32-month highs of 53.3.
“The ongoing upturn in business activity in March rounds of the euro zone’s best quarter since the second quarter of 2011. The survey is signaling a 0.5% increase in GDP in the first quarter, building on the 0.3% increase seen in the final quarter of last year,” said Chris Williamson, chief economist at survey compiler Markit.
However, the report also noted that manufacturers and service providers cut prices again in March, adding to concerns over the risk of deflation in the euro area.
Elsewhere, the euro was lower against the yen, with EUR/JPY sliding 0.16% to 140.11.
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