🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

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
EUR/USD
-
EUR/GBP
-

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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.