LONDON Aug 5 The euro headed back below $1.34
on Tuesday after a survey of Italian service sector purchasing
managers disappointed on the low side, while a surprise bounce
for equivalent numbers in Sweden drove the crown higher.
The European PMI surveys as expected all showed growth, but
the dip in the Italian number underlined a fragile outlook that
has the market expecting more action from the European Central
Bank this year to pump more euros into the financial system.
"It certainly has reacted negatively to the Italian
numbers," said Neil Mellor, a strategist with Bank of New York
Mellon in London.
"On the main euro zone numbers even 54 is not exactly a
figure that sets the world alight. It returns us to what we've
been seeing for a few weeks now - that the momentum in Europe is
The euro, down as much as 6 cents against the dollar since
early May, fell further after the main euro zone numbers and was
almost 0.2 percent lower in morning deals in Europe at $1.3394.
(Editing by Emelia Sithole-Matarise)