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Forex - EUR/USD erases losses after disappointing U.S. data

Published 08/19/2010, 10:37 AM
EUR/USD
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EUR/GBP
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Investing.com – The euro erased earlier losses against the U.S. dollar on Thursday, rising to hit a fresh daily high, after a flurry of worse-than-expected U.S. economic data.

EUR/USD hit 1.2903 during European afternoon trade, a fresh daily high; the pair subsequently consolidated at 1.2872, gaining 0.14%.

The pair was likely to find short-term support at 1.2733, the low of August 16 and resistance at 1.2922, Wednesday's high.

Earlier in the day, official data showed that U.S. jobless claims spiked to their highest level since November 2009.

The U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week rose to a seasonally adjusted 500K, after increasing to a revised 488K in the preceding week.

Analysts had expected claims to decline to 475K last week.

Also Thursday, official data showed that the Philadelphia Fed manufacturing index tumbled unexpectedly in August.

Meanwhile, the euro was down against the pound, with EUR/GBP shedding 0.15% to hit 0.8230.

Earlier Thursday, the German central bank said in its monthly report that it now expects Germany's gross domestic product to rise by approximately 3.0% in 2010, up from the 1.90% it predicted in June.

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