Investing.com - The euro remained lower against the U.S. dollar on Thursday, as concerns over high Spanish borrowing costs weighed, while data showing that U.S. jobless claims fell to the lowest level in almost four years last week buoyed the greenback.
EUR/USD hit 1.3034 during U.S. morning trade, the pair’s lowest since March 16; the pair subsequently consolidated at 1.3060, shedding 0.62%.
The pair was likely to find support at 1.3003, the low of March 15 and a one-month low and resistance at 1.3163, the session high.
The single currency came under broad selling pressure as Spain’s borrowing costs continued to rise in the wake of Wednesday’s poorly received government bond auction. The yield on the country’s 10-year bond climbed to 5.71% earlier, the highest level since mid-December.
Meanwhile, concerns over the outlook for growth in the euro zone mounted following a recent string of weak economic data.
Earlier Thursday, official data showed that German industrial production dropped 1.3% in February, more than expectations for a 0.5% drop, renewing concerns over the outlook for the bloc’s largest economy.
The data came one day after European Central Bank President Mario Draghi warned that "downside risks to the economic outlook prevail" after the central bank kept its benchmark interest rate unchanged at a record low 1%.
In the U.S., official data showing that initial jobless claims fell to the lowest level in nearly four years last week supported expectations that the Federal Reserve will hold off on implementing fresh monetary easing measures.
The Department of Labor said the number of individuals filing for initial jobless benefits in the week ending March 31 fell to a seasonally adjusted 357,000, the lowest since April 2008 and slightly short of expectations for a decline to 355,000.
The euro was also lower against the pound and the yen, with EUR/GBP shedding 0.30% to hit 0.8245 and EUR/JPY tumbling 0.74% to hit 107.61.
Meanwhile, market participants were shifting their focus to Friday’s U.S. data on non-farm payrolls, ahead of the long Easter holiday weekend.
EUR/USD hit 1.3034 during U.S. morning trade, the pair’s lowest since March 16; the pair subsequently consolidated at 1.3060, shedding 0.62%.
The pair was likely to find support at 1.3003, the low of March 15 and a one-month low and resistance at 1.3163, the session high.
The single currency came under broad selling pressure as Spain’s borrowing costs continued to rise in the wake of Wednesday’s poorly received government bond auction. The yield on the country’s 10-year bond climbed to 5.71% earlier, the highest level since mid-December.
Meanwhile, concerns over the outlook for growth in the euro zone mounted following a recent string of weak economic data.
Earlier Thursday, official data showed that German industrial production dropped 1.3% in February, more than expectations for a 0.5% drop, renewing concerns over the outlook for the bloc’s largest economy.
The data came one day after European Central Bank President Mario Draghi warned that "downside risks to the economic outlook prevail" after the central bank kept its benchmark interest rate unchanged at a record low 1%.
In the U.S., official data showing that initial jobless claims fell to the lowest level in nearly four years last week supported expectations that the Federal Reserve will hold off on implementing fresh monetary easing measures.
The Department of Labor said the number of individuals filing for initial jobless benefits in the week ending March 31 fell to a seasonally adjusted 357,000, the lowest since April 2008 and slightly short of expectations for a decline to 355,000.
The euro was also lower against the pound and the yen, with EUR/GBP shedding 0.30% to hit 0.8245 and EUR/JPY tumbling 0.74% to hit 107.61.
Meanwhile, market participants were shifting their focus to Friday’s U.S. data on non-farm payrolls, ahead of the long Easter holiday weekend.