Forex - EUR/USD higher on strong U.S. data

Investing.com - The euro advanced against the U.S. dollar Thursday, as strong U.S. economic data supported risk sentiment but the single currency remained under pressure over Greek uncertainty

EUR/USD traded at 1.3106 higher by 0.30% after hitting a low of 1.2975 and a high of 1.3120

The pair was likely to find support at 1.2930, the low of January 25 and resistance at 1.3120, the session high.

Risk sentiment was spurred as U.S. initial jobless claims unexpectedly fell to their lowest level since March 2008 last week, declining to 348,000, and positively surprising expectations for an increase to 364,000.

An index of manufacturing activity in the Philadelphia area advanced more than expected in February, climbing to 10.2, beating expectations for an increase to 9.0.

In another economically bullish report, the U.S. Census Bureau stated the number of building permits issued in January rose 0.7% to a seasonally adjusted 0.68 million, broadly in line with market expectations.

However,  concerns over a delay on a second bailout for Greece persisted after a teleconference of euro zone finance ministers on Wednesday failed to reach a decision about the bailout.

European Union officials are believed to be looking at delaying all or part of Greece's bailout until after a general election in the country,  expected to take place in April. 

Policy makers are studying the potential of granting a bridge loan to Athens, allowing the island nation to meet EUR14.4 billion in repayments which come due on March 20, avoiding a default.

The greenback was also supported after ratings agency Moody's warned that it may cut the credit ratings of 114 banks in 16 countries across Europe, citing banks' vulnerability to the sovereign debt crisis in the euro zone.

The euro was also lower against the pound, with EUR/GBP giving back 0.29% to hit 0.8302.

Also Thursday, official data showed that U.S. core producer price inflation rose more-than-expected in January, rising by 0.4%, while PPI rose by 0.1%, slightly below expectations for a 0.3% gain.

Investors are awaiting U.S. and Canadian consumer price inflation numbers as well as Bank of Japan’s policy meeting minutes on Friday.