Investing.com - The euro erased losses against the U.S. dollar on Thursday, rebounding from the session low after the release of a string of broadly weaker-than-expected U.S. data, but concerns over the euro zone debt crisis continued to weigh.
EUR/USD pulled back from 1.3068, the session low to hit 1.3137 during U.S. morning trade, easing up 0.12%.
The pair was likely to find support at 1.3003, the low of March 15 and resistance at 1.3171, Tuesday’s high.
The euro found support after official data showed that manufacturing activity in the Philadelphia-region expanded at a slower rate than expected in April, while an industry report showed that U.S. existing home sales declined unexpectedly last month.
The data came after a government report showing that the number of people who filed for unemployment assistance in the U.S. last week fell less-than-expected, while the previous week’s figure was revised higher.
The Department of Labor said the number of individuals filing for initial jobless benefits in the week ending April 14 fell by 2,000 to a seasonally adjusted 386,000, disappointing expectations for a decline of 18,000 to 370,000.
The previous week’s figure was revised up to 388,000 from 380,000.
The euro fell to the session low against the greenback earlier, as concerns over Spain’s fiscal problems weighed, despite initial relief following an auction of Spanish government bonds.
Spain raised slightly more than the full targeted amount of EUR2.5 billion, while the yield on the country’s 10-year bonds was higher but remained below the 6% level.
Spain auctioned EUR1.11 billion of two-year bonds at an average yield of 3.46%, up from 2.06% at a similar auction last month and EUR1.42 billion of 10-year bonds at an average yield of 5.74%, up from 5.33% from a similar auction in March.
The increase in 10-year bond yields reflected concerns that that Spain’s government may struggle to reduce one of the largest deficits in the euro zone in the face of a looming recession.
The euro was lower against the pound, with EUR/GBP slipping 0.09% to hit 0.8180, but pushed higher against the broadly weaker yen, with EUR/JPY rising 0.41% to hit 107.06.
The Federal Reserve Bank of Philadelphia said earlier that its manufacturing index declined to 8.5 in April from a reading of 12.5 the previous month. Analysts had expected the index to ease down to 12.0.
Meanwhile, the National Association of Realtors said that existing home sales fell by 2.6% to a seasonally adjusted 4.48 million units in March, confounding expectations for a modest 0.5% increase to 4.62 million units.
EUR/USD pulled back from 1.3068, the session low to hit 1.3137 during U.S. morning trade, easing up 0.12%.
The pair was likely to find support at 1.3003, the low of March 15 and resistance at 1.3171, Tuesday’s high.
The euro found support after official data showed that manufacturing activity in the Philadelphia-region expanded at a slower rate than expected in April, while an industry report showed that U.S. existing home sales declined unexpectedly last month.
The data came after a government report showing that the number of people who filed for unemployment assistance in the U.S. last week fell less-than-expected, while the previous week’s figure was revised higher.
The Department of Labor said the number of individuals filing for initial jobless benefits in the week ending April 14 fell by 2,000 to a seasonally adjusted 386,000, disappointing expectations for a decline of 18,000 to 370,000.
The previous week’s figure was revised up to 388,000 from 380,000.
The euro fell to the session low against the greenback earlier, as concerns over Spain’s fiscal problems weighed, despite initial relief following an auction of Spanish government bonds.
Spain raised slightly more than the full targeted amount of EUR2.5 billion, while the yield on the country’s 10-year bonds was higher but remained below the 6% level.
Spain auctioned EUR1.11 billion of two-year bonds at an average yield of 3.46%, up from 2.06% at a similar auction last month and EUR1.42 billion of 10-year bonds at an average yield of 5.74%, up from 5.33% from a similar auction in March.
The increase in 10-year bond yields reflected concerns that that Spain’s government may struggle to reduce one of the largest deficits in the euro zone in the face of a looming recession.
The euro was lower against the pound, with EUR/GBP slipping 0.09% to hit 0.8180, but pushed higher against the broadly weaker yen, with EUR/JPY rising 0.41% to hit 107.06.
The Federal Reserve Bank of Philadelphia said earlier that its manufacturing index declined to 8.5 in April from a reading of 12.5 the previous month. Analysts had expected the index to ease down to 12.0.
Meanwhile, the National Association of Realtors said that existing home sales fell by 2.6% to a seasonally adjusted 4.48 million units in March, confounding expectations for a modest 0.5% increase to 4.62 million units.