Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Forex - EUR/USD edges higher, but gains capped

Published 12/03/2013, 08:12 AM
EUR/USD
-
EUR/GBP
-
Investing.com - The euro edged higher against the U.S. dollar on Tuesday, after the release of positive Spanish employment data earlier in the trading session, although expectations for the Federal Reserve to soon begin tapering its stimulus program continued to support the greenback.

EUR/USD hit 1.3582 during European afternoon trade, the session high; the pair subsequently consolidated at 1.3577, adding 0.27%.

The pair was likely to find support at 1.3490, the low of November 25 and resistance at 1.3622, the high of November 29.

Official data earlier showed that the number of unemployed people in Spain declined by 2,500 in November, confounding expectations for an increase of 44,300, after a 87,000 climb the previous month.

Meanwhile, speculation over the future of the Fed's stimulus program persisted after the Institute for Supply Management said Monday that manufacturing activity in the U.S. expanded at the fastest rate since April 2011 in November, fuelling optimism over the economic recovery.

The ISM manufacturing purchasing managers’ index rose to 57.3 in November from 56.4 in October. Analysts had expected the index to fall to 55.0.

Sterling was fractionally higher against the euro, with EUR/GBP edging down 0.08% to hit 0.8272.

Also Tuesday, the U.K. construction purchasing managers' index rose to 62.6 in November, the highest level since August 2007, from 59.4 in October. Analysts had expected the index to tick down to 59.0.

The report said overall activity rose for the seventh month in a row, with "sharp increases” in new orders and employment, while growth in house-building in November was the fastest in 10 years.

The report came a day after data showed that the manufacturing sector in the U.K. expanded at the fastest rate in 33 months in November. The upbeat fuelled expectations that the Bank of England may tighten monetary policy ahead of other central banks.


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.