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Forex - EUR/USD edges lower ahead of euro zone PMIs

Published 04/23/2015, 02:08 AM
© Reuters.  Euro slips lower vs. greenback with eyes on manufacturing, service sector data
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Investing.com - The euro edged lower against the U.S. dollar on Thursday, after data showed that the German consumer climate improved less than expected this month and as investors remained cautious ahead of euro zone manufacturing and service sector data due later later in the day.

EUR/USD hit 1.0692 during late Asian trade, the pair's lowest since April 21; the pair subsequently consolidated at 1.0707, slipping 0.16%.

The pair was likely to find support at 1.0622, the low of April 16 and resistance at 1.0850, the high of April 17.

Data earlier showed that the Gfk German consumer climate index ticked up to 10.1 this month from 10.0 in March. Analysts had expected the index to rise to 10.2 in April.

The euro also remained under pressure as the Greek government was no closer to reaching an agreement with its euro zone partners and the International Monetary Fund over economic reforms required to access remaining bailout funds, fuelling fears that the country could be forced out of the euro zone.

On Tuesday Bloomberg reported that the European Central Bank is considering tighter rules on Greek banks in return for emergency liquidity, adding to pressure on Athens.

Meanwhile, the dollar remained supported after the U.S. National Association of Realtors said on Wednesday that existing home sales rose 6.1% last month to 5.19 million units from a revised total units of 4.89 million. Analysts had expected existing home sales to rise 3.0% in March.

The greenback's gains were capped however, as investors pushed back expectations for higher U.S. interest rates after a recent streak of soft economic data dampened optimism on the country's recovery.

The euro was also lower against the pound, with EUR/GBP edging down 0.11% to 0.7125.

Later in the day, the euro zone was to release survey data on private sector economic activity, while Spain was to release its employment report. The U.S. was to report in initial jobless claims and new home sales.

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