Investing.com - The dollar softened against the euro on Thursday though it took back earlier losses after data on U.S. jobless claims and inflation met market expectations though investors viewed the indicators as too soft to prompt the Federal Reserve to speed up the pace at which it tapers monthly asset purchases.
In U.S. trading, EUR/USD was trading at 1.3606, up 0.01%, up from a session low of 1.3586 and off a high of 1.3650.
The pair was likely to find support at 1.3581, Wednesday's low, and resistance at 1.3699, Tuesday's high.
The U.S. Department of Labor reported earlier that the number of individuals filing for initial jobless benefits in the week ending Jan. 11 declined by 2,000 to 326,000 from the previous week’s revised total of 328,000. Analysts had expected U.S. jobless claims to hold steady last week.
A separate report showed that the U.S. consumer price index rose by 0.3% in December, in line with forecasts after holding flat in November.
Core consumer prices, which are stripped of volatile food and energy costs, inched up 0.1% last month, also meeting estimates. Core consumer prices rose 0.2% in November.
Medical care commodities, which include prescription drugs, contracted by 0.8%, the most since 1967, which helped remind markets that even as the Federal Reserve scales back its USD75 billion bond-buying program this year, it will do so gradually, while monetary tightening remains far off on the horizon.
Fed bond purchases aim to spur recovery by suppressing long-term interest rates, thus keeping the dollar soft as long as they remain in effect.
Meanwhile in Europe, the euro found support after European Central Bank governing council member Jens Weidmann played down fears over deflationary pressures in the currency bloc.
Weidmann, also the head of Germany’s Bundesbank, said he saw the upswing in the German economy continuing into this year and the next, and his comments helped offset lackluster inflation data.
Eurostat reported earlier the euro area's consumer price index rose 0.8% on a year-over-year basis in December, in line with expectations and unchanged from a preliminary estimate though still well below the ECB’s 2% target.
The euro was up against the pound, with EUR/GBP gaining 0.19% to 0.8327, and down against the yen, with EUR/JPY trading down 0.34% 141.81.
On Friday, the U.S. is to wrap up the week with the closely watched preliminary reading of the University of Michigan consumer sentiment index. The U.S. is also to release data on building permits, housing starts and industrial production.
In U.S. trading, EUR/USD was trading at 1.3606, up 0.01%, up from a session low of 1.3586 and off a high of 1.3650.
The pair was likely to find support at 1.3581, Wednesday's low, and resistance at 1.3699, Tuesday's high.
The U.S. Department of Labor reported earlier that the number of individuals filing for initial jobless benefits in the week ending Jan. 11 declined by 2,000 to 326,000 from the previous week’s revised total of 328,000. Analysts had expected U.S. jobless claims to hold steady last week.
A separate report showed that the U.S. consumer price index rose by 0.3% in December, in line with forecasts after holding flat in November.
Core consumer prices, which are stripped of volatile food and energy costs, inched up 0.1% last month, also meeting estimates. Core consumer prices rose 0.2% in November.
Medical care commodities, which include prescription drugs, contracted by 0.8%, the most since 1967, which helped remind markets that even as the Federal Reserve scales back its USD75 billion bond-buying program this year, it will do so gradually, while monetary tightening remains far off on the horizon.
Fed bond purchases aim to spur recovery by suppressing long-term interest rates, thus keeping the dollar soft as long as they remain in effect.
Meanwhile in Europe, the euro found support after European Central Bank governing council member Jens Weidmann played down fears over deflationary pressures in the currency bloc.
Weidmann, also the head of Germany’s Bundesbank, said he saw the upswing in the German economy continuing into this year and the next, and his comments helped offset lackluster inflation data.
Eurostat reported earlier the euro area's consumer price index rose 0.8% on a year-over-year basis in December, in line with expectations and unchanged from a preliminary estimate though still well below the ECB’s 2% target.
The euro was up against the pound, with EUR/GBP gaining 0.19% to 0.8327, and down against the yen, with EUR/JPY trading down 0.34% 141.81.
On Friday, the U.S. is to wrap up the week with the closely watched preliminary reading of the University of Michigan consumer sentiment index. The U.S. is also to release data on building permits, housing starts and industrial production.