Investing.com - The broadly weaker euro fell to fresh session lows against the dollar on Thursday after data showing that euro zone inflation fell to a four year low in October sparked concerns over the risk of further rate cuts by the European Central bank.
EUR/USD hit 1.3602 during U.S. morning trade, the lowest since October 17; the pair subsequently consolidated at 1.3616, dropping 0.87%.
The pair was likely to find support at 1.3560 and resistance at 1.3645.
The drop in the euro came after Eurostat said consumer price inflation in the currency bloc rose 0.7% in October, the slowest pace since November 2009, after rising 1.1% in September.
A separate report showed that the euro zone unemployment rate was at a record high 12.2% in September.
The dollar extended gains against the euro after data showed that manufacturing activity in the Chicago region expanded at the fastest rate in 30 years in October.
The Chicago manufacturing purchasing managers’ index jumped to 65.9 in October from 55.7 in September. Analysts had expected the index to decline to 55.0.
The new orders component of the index jumped to a nine year high of 74.3 from 58.9 in September.
Another report showed that U.S. initial jobless claims fell in line with expectations last week.
The Department of Labor said the number of individuals filing for initial jobless benefits in the week ending October 25 declined by 10,000 to a seasonally adjusted 340,000.
Demand for the dollar continued to be underpinned after the Federal Reserve sounded more optimistic than anticipated in its assessment of the economy on Wednesday.
The Fed left its USD85 billion-a-month asset purchase program in place following its monthly policy meeting, and gave no clear indication whether it would start scaling back stimulus at the December meeting or continue it into the start of 2014.
The euro was sharply lower against the yen, with EUR/JPY tumbling 1.17% to 133.73.
Elsewhere, the single currency was also weaker against the pound, with EUR/GBP dropping 0.95% to 0.8482.
EUR/USD hit 1.3602 during U.S. morning trade, the lowest since October 17; the pair subsequently consolidated at 1.3616, dropping 0.87%.
The pair was likely to find support at 1.3560 and resistance at 1.3645.
The drop in the euro came after Eurostat said consumer price inflation in the currency bloc rose 0.7% in October, the slowest pace since November 2009, after rising 1.1% in September.
A separate report showed that the euro zone unemployment rate was at a record high 12.2% in September.
The dollar extended gains against the euro after data showed that manufacturing activity in the Chicago region expanded at the fastest rate in 30 years in October.
The Chicago manufacturing purchasing managers’ index jumped to 65.9 in October from 55.7 in September. Analysts had expected the index to decline to 55.0.
The new orders component of the index jumped to a nine year high of 74.3 from 58.9 in September.
Another report showed that U.S. initial jobless claims fell in line with expectations last week.
The Department of Labor said the number of individuals filing for initial jobless benefits in the week ending October 25 declined by 10,000 to a seasonally adjusted 340,000.
Demand for the dollar continued to be underpinned after the Federal Reserve sounded more optimistic than anticipated in its assessment of the economy on Wednesday.
The Fed left its USD85 billion-a-month asset purchase program in place following its monthly policy meeting, and gave no clear indication whether it would start scaling back stimulus at the December meeting or continue it into the start of 2014.
The euro was sharply lower against the yen, with EUR/JPY tumbling 1.17% to 133.73.
Elsewhere, the single currency was also weaker against the pound, with EUR/GBP dropping 0.95% to 0.8482.