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Forex - EUR/USD steady after rise in U.S. jobless claims

Published 10/18/2012, 08:49 AM
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Investing.com - The euro remained supported close to a one-month high against the U.S. dollar on Thursday, after official data showed that U.S. jobless claims rose significantly more-than-expected last week, as investors waited for the start of a two-day European summit.

EUR/USD hit 1.3084 during European afternoon trade, the session low; the pair subsequently consolidated at 1.3101, down 0.13%.

The pair was likely to find support at 1.2942, Tuesday’s low and near-term resistance at 1.3138, Wednesday’s high and a one-month high.

The Department of Labor said the number of individuals filing for initial jobless benefits last week rose by 46,000 to a seasonally adjusted 388,000, compared to expectations for an increase to 365,000.

The previous week’s figure was revised up to 342,000 from a previously reported 339,000, which was the lowest reading since February 2008.

The euro remained supported after Spain saw the yield on 10-year government bonds fall to the lowest level since April at an auction of government debt earlier in the day.

Spain’s Treasury sold EUR1.51 billion worth of ten-year government bonds at an average yield of 5.45%, down from 5.66% at a similar auction last month.

The yield on three-year bonds fell to 3.22% from 3.95% last month, while the yield on four-year bonds declined to 3.97% from 4.60% in September.

Investors remained cautious ahead of the start of a two-day European Union summit, although no major announcements on Spain or Greece were expected.

The euro was almost unchanged against the pound, with EUR/GBP dipping 0.04% to 0.8120, but was close to a five-month high against the broadly weaker yen, with EUR/JPY up 0.29% to 103.85.

Later Thursday, the U.S. was to publish data on manufacturing activity in Philadelphia.



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