Investing.com – The euro extended sharp losses against the U.S. dollar on Thursday, tumbling to a three-day low, following the release of better-than-expected data on U.S. service sector activity.
EUR/USD hit 1.3617 during European afternoon trade, the pair’s lowest since Monday; the pair subsequently consolidated at 1.3636, tumbling 1.25%.
The pair was likely to find support at 1.3448, the low of January 21 and resistance at 1.3824, the day’s high.
The Institute for Supply Management said that the U.S. services sector grew in January at its fastest pace since August 2005. Its index of national non-manufacturing activity rose to 59.4 in January from 57.1 in December, surpassing a forecast of 57.0.
Earlier in the day, the euro lost support after European Central Bank President Jean-Claude Trichet said that at 1.0%, the ECB's policy rate remained "appropriate" but added that "very close monitoring" of price developments was "warranted."
Also Thursday, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending January 29 fell to a seasonally adjusted 415K, after rising to a revised 457K in the preceding week.
Analysts had expected initial jobless claims to drop to 425K last week.
A separate report showed that U.S. labor productivity rose more-than-expected in the fourth quarter while unit labor costs declined unexpectedly.
The euro was also sharply lower against the pound, with EUR/GBP plunging 0.98% to hit 0.8445.
Later in the day, the Chairman of the Federal Reserve, Ben Bernanke, was to speak at a public engagement.
EUR/USD hit 1.3617 during European afternoon trade, the pair’s lowest since Monday; the pair subsequently consolidated at 1.3636, tumbling 1.25%.
The pair was likely to find support at 1.3448, the low of January 21 and resistance at 1.3824, the day’s high.
The Institute for Supply Management said that the U.S. services sector grew in January at its fastest pace since August 2005. Its index of national non-manufacturing activity rose to 59.4 in January from 57.1 in December, surpassing a forecast of 57.0.
Earlier in the day, the euro lost support after European Central Bank President Jean-Claude Trichet said that at 1.0%, the ECB's policy rate remained "appropriate" but added that "very close monitoring" of price developments was "warranted."
Also Thursday, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending January 29 fell to a seasonally adjusted 415K, after rising to a revised 457K in the preceding week.
Analysts had expected initial jobless claims to drop to 425K last week.
A separate report showed that U.S. labor productivity rose more-than-expected in the fourth quarter while unit labor costs declined unexpectedly.
The euro was also sharply lower against the pound, with EUR/GBP plunging 0.98% to hit 0.8445.
Later in the day, the Chairman of the Federal Reserve, Ben Bernanke, was to speak at a public engagement.