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Forex - EUR/USD erases losses after weak U.S. jobs, inflation data

Published 04/14/2011, 10:12 AM
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EUR/GBP
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Investing.com – The euro erased losses against the U.S. dollar on Thursday, pulling back from a four-day low after U.S. data showing that jobless claims rose unexpectedly last week and producer price inflation rose less-than-expected in March.

EUR/USD clawed back up from 1.4366, the pair’s lowest since April 8; to hit 1.4447 during early U.S. trade, easing up 0.03%.

The pair was likely to find support at 1.4290, the low of April 8 and resistance at 1.4519, Wednesday’s high and a 15-month high.

The Department of Labor said initial claims for state unemployment benefits rose 27,000 to a seasonally adjusted 412,000. The prior week's figure was revised up to 385,000 from the previously reported 382,000. Analysts had expected jobless claims to slip to 380,000.

A separate report showed that producer price inflation rose 0.7% last month, after rising by 1.6% in February, as higher prices for energy and motor vehicles compensated for declining food prices. Analysts had expected PPI to rise by 0.1% in March.

Core inflation, which excludes volatile food and energy costs, increased 0.3%, slightly more than the 0.2% estimated gain.

Meanwhile, the euro was lower against the pound, with EUR/GBP shedding 0.41% to hit 0.8841.

Earlier in the day, the cost of insuring Greek government debt against default surged to a euro era-lifetime high after German Finance Minister Wolfgang Schaeuble said Greece may have to restructure its debt, following an audit in June.



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