Service sector

Euro drops on US service sector data

Frankfurt, Germany
The euro depreciated below $1.0150 today after US data showed US services sector activity rose at a healthy pace in July and supported the strength of the note green.

The euro was trading around 3pm GMT at $1.0135, down from $1.0205 at the end of trading on the European forex market the previous day.

The European Central Bank (ECB) has set the reference exchange rate for the euro at $1.0194.

Risk aversion persists in markets due to tensions between the United States and China over Taiwan.

Moreover, economic growth in the Eurozone contracted at the start of the third quarter.

The final composite index of eurozone total activity for manufacturing and services came in at 49.9 (52 in June), a 17-month low, according to S&P Global, which includes now IHS Markit.

A value below 50 signals a contraction in economic activity.

However, service sector activity in the United States improved 1.4 points to 56.7 points in July from the previous month, according to the Institute for Supply Management (ISM) index.

Incoming orders to businesses in the United States rose 2% in June from the previous month, more than expected.

The single currency was trading in a fluctuation band between 1.0127 and 1.0207 dollars.