Investing.com - The euro trimmed losses against the U.S. dollar on Thursday, pulling back from a two-week low after a string of robust U.S. data supported market sentiment but the single currency remained under pressure amid uncertainty over Greece’s second bailout.
EUR/USD pulled away from 1.2974, the pair’s lowest since January 25, to hit 1.3032 during U.S. morning trade, still down 0.27% on the day.
The pair was likely to find support at 1.2930, the low of January 25 and resistance at 1.3066, the session high.
Market sentiment firmed up after official data showed that U.S. initial jobless claims unexpectedly fell to their lowest level since March 2008 last week, declining to 348,000, confounding expectations for an increase to 364,000.
Data also showed that an index of manufacturing activity in the Philadelphia area rose more-than-expected in February, advancing to 10.2, above expectations for a rise to 9.0.
In a separate report, the U.S. Census Bureau said the number of building permits issued in January rose 0.7% to a seasonally adjusted 0.68 million, broadly in line with market expectations.
But 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 issue.
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, which is expected to take place in April.
Officials are examining the possibility of extending a bridging loan to Athens, which would allow Greece 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 shedding 0.47% to hit 0.8287.
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.
EUR/USD pulled away from 1.2974, the pair’s lowest since January 25, to hit 1.3032 during U.S. morning trade, still down 0.27% on the day.
The pair was likely to find support at 1.2930, the low of January 25 and resistance at 1.3066, the session high.
Market sentiment firmed up after official data showed that U.S. initial jobless claims unexpectedly fell to their lowest level since March 2008 last week, declining to 348,000, confounding expectations for an increase to 364,000.
Data also showed that an index of manufacturing activity in the Philadelphia area rose more-than-expected in February, advancing to 10.2, above expectations for a rise to 9.0.
In a separate report, the U.S. Census Bureau said the number of building permits issued in January rose 0.7% to a seasonally adjusted 0.68 million, broadly in line with market expectations.
But 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 issue.
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, which is expected to take place in April.
Officials are examining the possibility of extending a bridging loan to Athens, which would allow Greece 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 shedding 0.47% to hit 0.8287.
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.