Forex - EUR/USD higher despite negative euro zone data

Published 01/06/2012, 07:30 AM
Updated 01/06/2012, 07:33 AM
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Investing.com - The euro traded slightly higher against the dollar in mid London trade Friday despite euro zone confidence numbers hitting two year lows and a disappointing French bond auction.  

EUR/USD hit a low of 1.2764 during U.S. trade. The pair is off a high of 1.2813 and is currently trading at 1.2798 up 0.06%.  

The pair was likely to find support at 1.2764 and  technical resistance exists at 1.2813.  

The single currency was pointing toward its fifth weekly loss against the greenback and was trading 0.1% from the weakest in 11 years versus the yen.    

Euro bearishness was exasperated yesterday after France's borrowing costs climbed at a bond sale and credit rating agencies threatened to cut the nations AAA rating.    

Earlier, Italy's largest bank, UniCredit stated it would have to seek additional financing while its CEO said things are getting worse and he expects other banks to follow their lead.  

An index of executive and consumer sentiment in the euro zone dropped to 93.3 in December from a revised 93.8 in November adding to the negative sentiment.  

Euro zone hope is pinned to German Chancellor Angela Merkel and French President Nicolas Sarkozy meeting in Berlin on January, 9th to hash out a plan to save the region's economy prior to the summit at the end of the month.  

Chris Weston of IG Markets told Bloomberg, "There's not a whole lot of reasons to be wanting to hold the euro at the moment. The fundamentals point to a weaker euro."  

The Euro traded higher against the pound with EUR/GBP adding back 0.11% to 0.8262.  

Investors are awaiting the critical U.S. Non Farm Payroll figures in about an hour from this writing. 






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