Euro Weakens, Affected By Economic Data And Cyprus

Learn Forex News : The euro traded near its lowest level in almost four months against the dollar after a report showed that manufacturing and service sectors in the euro area to contract in March, the condition is increasingly adding signs that the economy is struggling to emerge from recession.

The 17-nation currency weakened against most major currencies after a separate report showed that Germany's manufacturing sector shrank. But the euro had strengthened after Demetris Syllouris, who was the leader of Cyprus's European Party said that he was confident his country will reach an agreement on financial assistance. The yen remains strong despite Haruhiko Kuroda central bankers pledged to implement aggressive monetary easing.

"Weak economic data has hit the euro, the sentiment is very fragile," said Antje Praefcke, currency analyst at Commerzbank AG in Frankfurt. "Germany is one of the locomotive of growth in the euro zone, but after the release of the data less well than Germany, the people may be a little more careful this time. The euro is likely to remain under pressure. "