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Forex - EUR/USD lower as Fed easing speculation cools

Published 08/16/2012, 02:37 AM
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Investing.com - The euro was lower against the U.S. dollar on Thursday, as speculation over the possibility of more easing by the Federal Reserve waned, following U.S. data earlier in the week.

EUR/USD hit 1.2260 during late Asian trade, the pair’s lowest since August 10; the pair subsequently consolidated at 1.2267, down 0.18%.

The pair was likely to find near-term support at 1.2240, the low of August 10 and resistance at 1.2342, Wednesday’s high.

Data on Wednesday showed that industrial production in the U.S. rose more than expected in July.

The data came one day after a report showed that U.S. retail sales snapped four successive months of declines in July, jumping 0.8%, outstripping expectations for a 0.3% increase and dampening expectations for another round of quantitative easing by the U.S. central bank.

But investors remained cautious after data on Wednesday showed that a gauge of manufacturing activity in New York fell into contraction territory in August for the first time since October 2011.

The euro was slightly higher against the pound and the yen, with EUR/GBP edging up 0.08% to 0.7842 and EUR/JPY rising 0.18% to 97.25.

Later in the day, the euro zone was to produce official data on consumer price inflation.

The U.S. was to publish official data on building permits, as well as weekly government data on unemployment claims. The country was also to release official data on housing starts and a report on manufacturing activity in the Philadelphia area.   



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