LONDON (AFX) - The euro was weaker against other major currencies in early London trade, under pressure from today's falling Purchasers Managers Indexes in major European countries, dealers said.
They said that the initial approval given last night by U.S. republicans for a 1.35 trln usd tax cut over 11 years, had also served to undermine buying sentiment for the euro.
"The PMI reports out of Europe were weak," Michael Lewis at Dresdner Kleinwort Wasserstein said.
"The French was below 50 indicating a contraction in the economy and Italian and German PMIs were also falling. The 50 (level) boom and bust line has been broken," he added.
Sterling was also weaker tracking the euro, dealers said.
"The UK economy looks as if it is going to slow more than expected, which is also depressing sterling," Lewis at Dresdner Kleinwort Wasserstein said.
He said the yen was higher on equity related inflows.