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FOREX-Euro dips on weaker service sector surveys
August 5, 2014 / 8:50 AM / in 3 years

FOREX-Euro dips on weaker service sector surveys

LONDON, Aug 5 (Reuters) - 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 faltering.”

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)

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