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Forex - EUR/USD drops to 1-month lows after U.S. data

Published 02/26/2016, 10:23 AM
© Reuters.  Euro loses ground vs. broadly stronger dollar
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Investing.com - The euro dropped to one-month lows against the U.S. dollar on Friday, as strong U.S. economic reports lent broad support to the greenback.

EUR/USD hit 1.0944 during U.S. morning trade, the pair’s lowest since February 3; the pair subsequently consolidated at 1.0958, declining 0.54%.

The pair was likely to find support at 1.0901, the low of February 3 and resistance at 1.1137, the high of February 22.

Preliminary data showed that U.S. gross domestic product grew 1.0% in the fourth quarter, compared to a previously reported 0.7% growth rate and expectations for a 0.4% rate.

Data also showed that personal spending rose 0.5% in January, beating expectations for a 0.3% gain, after an increase of 0.1% in December.

In addition, the University of Michigan said its index of consumer sentiment rose to 91.7 in February from 90.7 the previous month, compared to expectations for an increase to 91.0.

In the euro zone, preliminary data earlier showed that Germany’s consumer price index ticked up 0.4% in February, disappointing expectations for a 0.5% rise, after a 0.8% fall the previous month. Year-on-year, consumer prices were flat, compared to expectations for a 0.1% gain.

The euro was steady against the pound, with EUR/GBP at 0.7889.

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