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Forex - EUR/USD edges up but remains close to 2-year trough

Published 11/07/2014, 02:10 AM
Euro remains within close distance of 2-year low vs. dollar
EUR/USD
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EUR/GBP
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Investing.com - The euro edged higher against the U.S. dollar on Friday, but still remained within close distance of a two-year low as remarks by European Central Bank President Mario Draghi on Thursday continued to weigh.

EUR/USD hit 1.2387 during late Asian trade, the session high; the pair subsequenttly consolidated at 1.2389, adding 0.14%.

The pair was likely to find support at 1.2293, the low from August 20, 2012, and resistance at 1.2578, Tuesday's high.

The euro came under broad selling pressure after Draghi said on Thursday that the ECB would soon begin purchasing asset-backed securities to prop up the economy.

The program will run for two years and have a "sizeable impact" on the ECB’s balance sheet, Draghi said.

He added that the governing council is unanimously committed to taking further "timely measures" if needed, which sent the euro dropping.

Meanwhile, the dollar remained supported after data showed that the number of people who filed for unemployment assistance in the U.S. last week fell more than expected, fueling optimism over the strength of the labor marke.

The U.S. Department of Labor reported on Thursday that the number of individuals filing for initial jobless benefits in the week ending November 1 decreased by 10,000 to 278,000 from the previous week's revised total of 288,000.

Analysts had expected jobless claims to fall by 3,000 to 285,000 last week.

The euro was higher against the pound, with EUR/GBP edging up 0.10% to 0.7823.

Later in the day, the U.S. was to release a report on nonfarm payrolls and the unemployment rate.

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