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EUR/USD gains on Greek bond issue, positive U.S. data supports dollar

Published 04/11/2014, 12:18 PM
Updated 04/11/2014, 12:21 PM
Euro gains as Greece returns to bond market
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Investing.com - The euro traded higher against the dollar on Friday, boosted by Greece's return to capital markets, while the dollar saw some support on upbeat U.S. consumer sentiment and wholesale pricing data.

In U.S. trading, EUR/USD was up 0.08% at 1.3898, up from a session low of 1.3863 and off a high of 1.3905.

The pair was likely to find support at 1.3673, the low from April 4, and resistance at 1.3948, the high from March 17.

The euro saw support after Greece made a successful return to the financial markets on Thursday, raising €3 billion in its first bond auction since 2010, when Athens sought its first bailout.

In the U.S., meanwhile, upbeat U.S. indicators supported the greenback and cushioned losses against the euro.

The preliminary Thomson Reuters/University of Michigan consumer sentiment index came to 82.6 in April, beating expectations for a 81.0 reading.

Separately, official data showed that the U.S. producer price index rose 0.5% in March, exceeding expectations for a 0.1% gain, after a 0.1% fall the previous month.

Core producer price inflation, which is stripped of volatile food, energy and trade items, rose 0.6% in March, beating expectations for a 0.2% rise after a 0.2% decline in February.

Still, growing market consensus that the Federal Reserve is nowhere close to tightening policy kept the greenback lower against the single currency.

The euro was up against the pound, with EUR/GBP up 0.36% to 0.8304, and up against the yen, with EUR/JPY up 0.10% at 141.14.

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