Forex - EUR/USD higher on U.S. jobless claims, trade balance

Investing.com - The euro traded higher against the U.S. dollar Thursday as advancing U.S. jobless claims and the trade balance falling less than expected weakened the greenback despite a lack luster Italian bond auction.

EUR/USD traded at 1.3177 up 0.52% in U.S. late morning trade.

The pair was likely to find support at 1.3065, Wednesday’s low and short-term resistance at 1.3357, the high of March 31st.

Dampening greenback enthusiasm, the number of people who filed for unemployment assistance in the U.S. last week rose unexpectedly according to governmental data..

In a report, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week rose to a seasonally adjusted 380K, from 367K in the preceding week whose figure was revised up from 357K.

Analysts had expected initial jobless claims to fall to 355K last week.
In addition, the U.S. trade balance fell less-than-expected last month.

In a report, Bureau of Economic Analysis stated that U.S. trade balance dropped to a seasonally adjusted -46.0B, from -52.5B in the preceding month whose figure was revised up from -52.6B.

Analysts had expected U.S. trade balance to fall -52.0B last month.

Meanwhile in the euro zone,  Italy auctioned EUR2.88 billion of the EUR3 billion of three-year bonds on offer, at an average yield of 3.89% compared to 2.76% at a similar auction last month, amid persistent concerns over the risk of sovereign debt contagion from Spain.

However,  the euro remained supported after European Central Bank Executive Board member Benoit Coeure said Wednesday that the central bank still had its bond-buying program available as an option to ease pressure on Spanish bond yields.

He added that the current level of market pressure on Spain was not justified given the reforms being undertaken by its government.

The euro also found support after official data showed that industrial production in the euro zone rose unexpectedly in February, but the year-on-year fall was still the steepest since December 2009.

Eurostat reported  industrial production climbed to a seasonally adjusted 0.5%, from 0.2% in the preceding month, defying expectations for a 0.3% decline.

Industrial output dropped 1.8% in the year to February, in line with expectations.

The euro was trading bounced from a near three-month low against the pound with EUR/GBP  adding 0.26% to hit 0.8264 and higher against the yen, with EUR/JPY up 0 46% to hit 106.31, off an earlier high of 106.60.