Investing.com - The euro dropped to a three-day low against the U.S. dollar on Friday, after the release of mixed U.S. economic reports, while U.S. budget negociations seemed to stall.
EUR/USD hit 1.3167 during U.S. morning trade, the pair's lowest since December 18; the pair subsequently consolidated at 1.6204, shedding 0.56%.
The pair was likely to find support at 1.3144, the low of December 17 and resistance at 1.3253, the session high.
In a revised report, the University of Michigan said its index of consumer sentiment unexpectedly deteriorated in December, ticking down to 72.9 from a reading of 74.5 the previous month. Analysts had expected the index to improve to 74.7 this month.
The data came after the U.S. Census Bureau said that core durable goods orders, which exclude transportation items, rose 1.6% in November, beating expectations for a 0.2% dip, after a 1.9% increase the previous month.
Durable goods orders rose by 0.7% last month, compared with expectations for a 0.2% rise, following a 1.1% increase in October.
A separate report showed that personal spending in the U.S. rose by 0.4% in November, more than the expected 0.3% rise, after a 0.1% fall the previous month.
Meanwhile, sentiment remained under pressure after U.S. House Speaker John Boehner pulled his so-called Plan B fiscal cliff option, which called for tax increases only on those Americans earning USD1 million or more per year, because his Republican colleagues did not support the legislation.
Although U.S. financial markets were open on Friday, the U.S. House adjourned for the Christmas holiday, fueling speculation that policymakers will not be able to avert the fiscal cliff.
Failure to prevent tax hikes from taking effect at the end of this year right when automatic spending cuts are due to take effect could tip the U.S. economy into a recession.
Elsewhere, the euro was steady against the pound with EUR/GBP dipping 0.06%, to hit 0.8131.
Also Friday, research group Gfk said that its index of Germany’s consumer climate fell to 5.6 in December from a reading of 5.8 the previous month. Analysts had expected the index to improve to 5.9 this month.
EUR/USD hit 1.3167 during U.S. morning trade, the pair's lowest since December 18; the pair subsequently consolidated at 1.6204, shedding 0.56%.
The pair was likely to find support at 1.3144, the low of December 17 and resistance at 1.3253, the session high.
In a revised report, the University of Michigan said its index of consumer sentiment unexpectedly deteriorated in December, ticking down to 72.9 from a reading of 74.5 the previous month. Analysts had expected the index to improve to 74.7 this month.
The data came after the U.S. Census Bureau said that core durable goods orders, which exclude transportation items, rose 1.6% in November, beating expectations for a 0.2% dip, after a 1.9% increase the previous month.
Durable goods orders rose by 0.7% last month, compared with expectations for a 0.2% rise, following a 1.1% increase in October.
A separate report showed that personal spending in the U.S. rose by 0.4% in November, more than the expected 0.3% rise, after a 0.1% fall the previous month.
Meanwhile, sentiment remained under pressure after U.S. House Speaker John Boehner pulled his so-called Plan B fiscal cliff option, which called for tax increases only on those Americans earning USD1 million or more per year, because his Republican colleagues did not support the legislation.
Although U.S. financial markets were open on Friday, the U.S. House adjourned for the Christmas holiday, fueling speculation that policymakers will not be able to avert the fiscal cliff.
Failure to prevent tax hikes from taking effect at the end of this year right when automatic spending cuts are due to take effect could tip the U.S. economy into a recession.
Elsewhere, the euro was steady against the pound with EUR/GBP dipping 0.06%, to hit 0.8131.
Also Friday, research group Gfk said that its index of Germany’s consumer climate fell to 5.6 in December from a reading of 5.8 the previous month. Analysts had expected the index to improve to 5.9 this month.