Investing.com - Financial Markets Worldwide
Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Forex - EUR/USD higher on weak job data despite strong housing numbers

Published 04/26/2012, 12:14 PM
Updated 04/26/2012, 12:16 PM
EUR/USD
-
EUR/GBP
-
EUR/JPY
-

Investing.com - The Euro traded higher against the U.S. Dollar Thursday, as weaker than expected U.S. job data counteracted strong housing figures depressing the greenback, despite falling consumer sentiment in the euro zone.

EUR/USD traded at 1.3227 during U.S. afternoon trade, climbing 0.08%.

The pair was likely to find support at 1.3105, Monday’s low, and resistance at 1.3263, today’s high.

Earlier in the day, official data showed that U.S. Initial Jobless Claims fell less-than-expected to a seasonally adjusted 388K last week from 389K in the preceding week whose figure was revised up from 386K.

Analysts had expected Initial Jobless Claims to fall to 375K last week.

This news weighed on the greenback despite pending U.S. home purchases surging 4.1% in March to 101.4, the highest level since April, 2010.

In the euro zone, the European Commission reported that an index of executive and consumer sentiment dropped to 92.8 from a revised 94.5 in March.

Economists were expecting a slide to 94.2 adding to the negative euro region sentiment.

In technical trading news, the JPMorgan Volatility Index for currencies plunged 9.20%, marking the lowest close since 2007.

Low volatility creates opportunities in currencies with higher benchmark rates since the risk in such trades is that market moves will erase profits.

Meanwhile, Ben Bernanake signaled yesterday that further stimulus from the central bank is unlikely unless the economy surprisingly starts to weaken.

The Fed Chief repeated his goal of keeping borrowing costs low until late 2014, at the earliest

The Euro was down against the British Pound and the Japanese Yen, with EUR/GBP falling 0.09% to hit 0.8171 and EUR/JPY giving back 0.55% to hit 106.92.




Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.