CANBERA (dpa-AFX) - The euro declined against its major counterparts in early European deals on Thursday, after a data showed that the region's manufacturing sector activity contracted unexpectedly in February, raising concerns over a slowdown in economy.
Survey data from IHS Markit showed that the flash manufacturing PMI dropped to a 68-month low of 49.2 from 50.5 in the previous month.
Meanwhile, the flash Composite Purchasing Managers' Index rose to 51.4 from 51 in January. Economists had forecast a score of 51.1.
The Services PMI climbed to a three-month high of 52.3 from 51.2 in January.
European stocks drifted lower as weak earnings updates and mixed PMI data offset investor optimism over progress in talks between the U.S. and China.
Investors focused on global trade developments, after the U.S. and Chinese negotiators have sketched outlines of agreements to end the trade war.
The currency traded mixed against its major counterparts in the Asian session. While it fell against the greenback and the yen, it rose against the pound and the franc.
The euro fell to 0.8666 against the pound, its weakest since January 29. This follows a high of 0.8703 seen at 7:00 pm ET. If the euro falls further, 0.84 is likely seen as its next support level.
The single currency dropped back to 1.1322 against the greenback, heading to pierce a 2-day low of 1.1321 touched at 2:00 am ET. On the downside, 1.11 is possibly seen the next support level for the euro.
Moving away from a high of 125.87 seen at 3:30 am ET, the euro reversed direction and edged down to a 2-day low of 125.33 against the yen. The next key support for the euro is seen around the 122.00 mark.
The latest survey from Nikkei showed that Japan manufacturing sector slipped into contraction in February, with a 32-month low manufacturing PMI score of 48.5.
That's down from 50.3 in January, and it sinks beneath the boom-or-bust line of 50 that separates expansion from contraction.
The single currency eased back to 1.1345 against the Swiss franc, from a session's high of 1.1366 hit at 3:15 am ET. The euro is likely to challenge support around the 1.12 area.
The euro held steady against the kiwi, after having advanced to an 8-day high of 1.6651 at 3:30 am ET. At yesterday's close, the pair was worth 1.6536.
After rising to a 10-day high of 1.5989 against the aussie at 1:00 am ET, the euro held steady thereafter. This follows more than a 2-week low of 1.5743 seen in the Asian session. The pair was valued at 1.5824 at Wednesday's close.
Data from the Australian Bureau of Statistics showed that Australia's unemployment rate came in at a seasonally adjusted 5.0 percent in January - unchanged and in line with expectations.
The Australian economy added 31,900 jobs last month - blowing away forecasts for an increase of 15,000 jobs following the gain of 16,900 jobs in December.
The euro reached as high as 1.4979 against the loonie at 3:30 am ET and moved sideways in later part of the session. The pair ended yesterday's trading at 1.4934.
At 7:30 am ET, the European Central Bank will release minutes from the January 23-24 meeting.
In the New York session, Canada wholesale sales and U.S. durable goods orders for December, weekly jobless claims for the week ended February 16, U.S. existing home sales and leading indicator for January are scheduled for release.
At 12:35 pm ET, the Bank of Canada Governor Stephen Poloz will deliver speech about monetary policy at the Chamber of Commerce of Metropolitan Montreal.
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