Investing.com - The euro slumped against the dollar on Thursday after data revealed U.S. retail sales advanced more than expected in November, another sign for investors that the Federal Reserve is close to tapering its USD85 billion in monthly bond purchases, possibly next week.
Bond purchases aim to spur recovery by pushing down long-term interest rates, weakening the dollar in the process.
In U.S. trading on Thursday, EUR/USD was down 0.21% at 1.3757, up from a session low of 1.3745 and off from a high of 1.3811.
The pair was likely to find support at 1.3695, Monday's low, and resistance at 1.3811, Wednesday's high.
The Commerce Department reported earlier that U.S. retail sales rose 0.7% in November, beating market expectations for a 0.6% increase. Core retail sales, which are stripped of automobiles, rose 0.4%, above forecasts for a 0.2% increase.
The data kept expectations alive that the Federal Reserve will soon decide to taper its USD85 billion in monthly bond purchases, possibly at Dec. 17-18 policy meeting.
Elsewhere, the U.S. Department of Labor said the number of individuals filing for initial jobless claims assistance last week rose to a two-month high of 368,000, far surpassing expectations for an increase to 320,000 from the previous week’s revised total of 300,000.
Markets shrugged off the news, attributing the increase to holiday volatility typical this time of year.
Meanwhile in Europe, industrial production in the euro area fell by 1.1% in October and rose just 0.2% from a year earlier.
Economists were forecast a monthly increase of 0.3% and an annual gain of 1.1%, and the disappointing readings gave investors reason to sell the euro for dollars on Thursday.
The single currency was up against the pound and up against the yen, with EUR/GBP trading up 0.05% at 0.8422 and EUR/JPY trading up 0.40% at 141.78.
On Friday, the U.S. is to round up the week with data on producer price inflation.
Bond purchases aim to spur recovery by pushing down long-term interest rates, weakening the dollar in the process.
In U.S. trading on Thursday, EUR/USD was down 0.21% at 1.3757, up from a session low of 1.3745 and off from a high of 1.3811.
The pair was likely to find support at 1.3695, Monday's low, and resistance at 1.3811, Wednesday's high.
The Commerce Department reported earlier that U.S. retail sales rose 0.7% in November, beating market expectations for a 0.6% increase. Core retail sales, which are stripped of automobiles, rose 0.4%, above forecasts for a 0.2% increase.
The data kept expectations alive that the Federal Reserve will soon decide to taper its USD85 billion in monthly bond purchases, possibly at Dec. 17-18 policy meeting.
Elsewhere, the U.S. Department of Labor said the number of individuals filing for initial jobless claims assistance last week rose to a two-month high of 368,000, far surpassing expectations for an increase to 320,000 from the previous week’s revised total of 300,000.
Markets shrugged off the news, attributing the increase to holiday volatility typical this time of year.
Meanwhile in Europe, industrial production in the euro area fell by 1.1% in October and rose just 0.2% from a year earlier.
Economists were forecast a monthly increase of 0.3% and an annual gain of 1.1%, and the disappointing readings gave investors reason to sell the euro for dollars on Thursday.
The single currency was up against the pound and up against the yen, with EUR/GBP trading up 0.05% at 0.8422 and EUR/JPY trading up 0.40% at 141.78.
On Friday, the U.S. is to round up the week with data on producer price inflation.