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Forex - EUR/USD climbs on upbeat euro zone data, weak U.S. reports

Published 10/30/2015, 11:03 AM
© Reuters.  Euro gains ground against broadly weaker dollar
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Investing.com - The euro climbed against the U.S. dollar on Friday, as upbeat euro zone data inflation and unemployment data lent support, while concerns over the strength of the U.S. economy dampened demand for the greenback.

EUR/USD hit 1.1072 during U.S. morning trade, the pair's highest since October 28; the pair subsequently consolidated at 1.1054, advancing 0.70%.

The pair was likely to find support at 1.0902, Thursday's low and resistance at 1.1095, the high of October 28.

Eurostat, the statistical body of the European Union, reported on Friday that the annual rate of inflation was flat in September, compared to expectations for a 0.1% uptick.

Euro zone inflation fell 0.1% in August. It was the first time in six months that the region saw declining inflation.

Data also showed that the single currency bloc's unemployment rate slipped to 10.8% last month from 10.9% in August, whose figure was revised from a previously estimated 11.0%. Analysts had expected the unemployment rate to remain at 11.0% in September.

Earlier Friday, a preliminary report showed that Spanish gross domestic product expanded by 0.08% in the third quarter, in line with expectations and down from a growth rate of 1.0% in the three months to June.

A separate report showed that German retail sales were flat in September, disappointing expectations for a 0.4% gain.

In the U.S., the University of Michigan said its consumer sentiment index fell to 90.0 this month from 92.1 in September, compared to expectations for a rise to 92.5.

In addition, the Bureau of Economic Analysis said that personal spending rose 0.1% last month, disappointing expectations for a 0.2% rise and after a 0.4% increase in August.

The data added to concerns over the strength of the economy after the Commerce Department said on Thursday that U.S. GDP grew at an annual rate of 1.5% in the three months to September, missing expectations for growth of 1.6%.

Also Friday, data showed that the Chicago purchasing managers' index rose to 56.2 in October from 48.7 the previous month, beating expectations for an increase to 49.0.

Another report showed that U.S. employment costs rose 0.6% in September, in line with expectations.

The greenback had strengthened broadly after Wednesday’s Federal Reserve statement said that officials might make a decision to raise interest rates at their December meeting.

The euro was also higher against the pound, with EUR/GBP adding 0.15% to 0.7181.

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