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Forex - EUR/USD edges lower ahead of PMI data

Published 01/02/2014, 02:30 AM
EUR/USD
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EUR/GBP
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Investing.com - The euro edged lower against the U.S. dollar on Thursday, as investors eyed the release of upcoming manufacturing data out of the euro zone, while the Federal Reserve's decision to begin tapering its stimulus program this month supported the greenback.

EUR/USD hit 1.3741 during late Asian trade, the session low; the pair subsequently consolidated at 1.3748, edging down 0.07%.

The pair was likely to find support at 1.3693, the low of December 27 and resistance at 1.3813, the high of December 31.

The greenback remained supported after the Conference Board on Tuesday said that its index of U.S. consumer confidence improved to 78.1 in December from 72.0 in November. Analysts had expected the index to rise to 76.0 this month.

The data came after Standard & Poor’s with Case-Shiller said that its house price index rose at an annualized rate of 13.6% in October from a year earlier, the strongest pace since February 2006 and above forecasts for an increase of 13%.

The strong reports added to expectations for further stimulus tapering by the Federal Reserve. The U.S. central bank will start reducing its bond-buying stimulus program by USD10 billion a month in January, amid indications of an improving U.S. economy.

The euro was also lower against the pound, with EUR/GBP falling 0.18% to 0.8293.

Later in the day, the euro zone was to release final data on manufacturing activity, while the U.S. was to produce weekly jobless claims data as well as a report by the Institute of Supply Management on manufacturing activity.


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