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Forex - EUR/USD steady ahead of euro zone data

Published 11/15/2012, 01:51 AM
Updated 11/15/2012, 01:52 AM
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Investing.com - The euro was steady against the U.S. dollar on Thursday, as markets were jittery ahead of the release of economic growth data from the euro zone, while the minutes of the Federal Reserve's latest policy meeting pointed toward more easing measures in the future.

EUR/USD hit 1.2753 during European morning trade, the daily high; the pair subsequently consolidated at 1.2740, easing up 0.04%.

The pair was likely to find support at 1.2662, the low of November 13 and resistance at 1.2827, the high of November 16.

Sentiment on the euro remained fragile as concerns that the economic outlook for the euro zone is worsening were underlined after official data on Wednesday showed that industrial production in the bloc tumbled 2.5% in September, compared to expectations for a 1.9% decline.

However, preliminary data earlier showed that France's gross domestic product rose 0.2% in the third quarter, beating the expected flat reading, following 0.1% decline in the previous quarter.

Meanwhile, the Federal Reserve indicated in the minutes of its October policy meeting that the central bank may need to expand its monthly purchases of bonds next year, after the expiration of a program to extend the maturities of assets on its balance sheet, known as Operation Twist.

The discussion indicates that Fed officials judge the economy still needs record stimulus to reduce an unemployment rate stuck near 8%.

Elsewhere, the euro was almost unchanged against the pound with EUR/GBP dipping 0.01%, to hit 0.8039.

Later in the day, the euro zone was to produce official data on consumer price inflation, as well as preliminary data on third quarter GDP. Germany and Italy were also to release individual GDP reports.

The U.S. was to release reports on initial jobless claims, consumer price inflation, crude oil stockpiles, in addition to data on manufacturing activity in New York and Philadelphia.

Meanwhile, a speech by Federal Reserve Chairman Ben Bernanke was to be closely watched for any indications on the future possible direction of monetary policy.


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