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Forex - EUR/USD higher after Chinese manufacturing data

Published 11/22/2012, 02:38 AM
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Investing.com - The euro was higher against the U.S. dollar on Thursday, as market sentiment was boosted by encouraging Chinese manufacturing data, while hopes that a deal on an aid payment for Greece is close supported the single currency.

EUR/USD hit 1.2867 during late Asian trade, the pair’s highest since November 7; the pair subsequently consolidated at 1.2852, gaining 0.19%.

The pair was likely to find support at 1.2735, Wednesday’s low and resistance at 1.2949, the high of November 20.

A report earlier showed that China’s preliminary HSBC manufacturing purchasing managers’ index rose to 50.4 in November, up from a final reading of 49.5 in October. The data eased concerns over a slowdown in the world’s largest economy.

The euro was also supported after German Chancellor Angela Merkel said an agreement to unlock a delayed bailout installment for Greece was still possible when euro zone finance ministers resume talks on Monday.

Talks between finance ministers and the International Monetary Fund ended without a deal on Tuesday, amid disagreements on how best to reduce the country’s debt to sustainable levels.

The euro was higher against the pound and the yen, with EUR/GBP up 0.11% to 0.8051 and EUR/JPY rising 0.20% to 106.08.

Later in the day, the euro zone was to release preliminary data on manufacturing and service sector activity, while Germany and France were also to release individual reports.

Trade volumes were expected to remain light on Thursday, with U.S. markets closed for the Thanksgiving holiday.



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