Investing.com - The euro extended losses against the U.S. dollar on Friday, as the release of downbeat U.S. data added to concerns over the strength of the U.S. economic recovery, while euro zone debt concerns continued to weigh.
EUR/USD hit 1.2691 during U.S. morning trade, the pair's lowest since November 13; the pair subsequently consolidated at 1.2698, dropping 0.63%.
The pair was likely to find support at 1.2662, the low of November 13 and resistance at 1.2785, the session high.
Official data showed that U.S. industrial production fell unexpectedly in October, ticking down 0.4% after a 0.2% rise the previous month. Analysts had expected industrial production to rise 0.2% in October.
A separate report showed that the U.S. capacity utilization rate declined to 77.8% in October from 78.2% the previous month, disappointing expectations for an increase to 78.3%.
Investors were also cautious ahead of highly anticipated talks between U.S. President Barack Obama and Republican lawmakers on how to resolve the country’s "fiscal cliff" later in the day.
Approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
The euro weakened earlier, after the European Central Bank said in a report that the euro zone's current account surplus narrowed more-than-expected in August, declining to EUR0.8 billion from an upwardly revised EUR10.9 billion the previous month.
Analysts had expected the current account surplus to narrow to EUR9.2 billion in August.
The report added to concerns over the worsning of the debt crisis in the euro zone after official data on Thursday showed that the region's economy shrank 0.1% in the third quarter, following a contraction of 0.2% in the preceding quarter. A technical recession is defined as two straight quarters of contraction.
The euro was also lower against the pound with EUR/GBP shedding 0.46%, to hit 0.8017.
Also Friday, official data showed that the euro zone's trade surplus expanded to EUR11.3 billion in September, more than the expected rise to EUR10.6 billion, from a surplus of EUR9.9 billion the previous month.
EUR/USD hit 1.2691 during U.S. morning trade, the pair's lowest since November 13; the pair subsequently consolidated at 1.2698, dropping 0.63%.
The pair was likely to find support at 1.2662, the low of November 13 and resistance at 1.2785, the session high.
Official data showed that U.S. industrial production fell unexpectedly in October, ticking down 0.4% after a 0.2% rise the previous month. Analysts had expected industrial production to rise 0.2% in October.
A separate report showed that the U.S. capacity utilization rate declined to 77.8% in October from 78.2% the previous month, disappointing expectations for an increase to 78.3%.
Investors were also cautious ahead of highly anticipated talks between U.S. President Barack Obama and Republican lawmakers on how to resolve the country’s "fiscal cliff" later in the day.
Approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
The euro weakened earlier, after the European Central Bank said in a report that the euro zone's current account surplus narrowed more-than-expected in August, declining to EUR0.8 billion from an upwardly revised EUR10.9 billion the previous month.
Analysts had expected the current account surplus to narrow to EUR9.2 billion in August.
The report added to concerns over the worsning of the debt crisis in the euro zone after official data on Thursday showed that the region's economy shrank 0.1% in the third quarter, following a contraction of 0.2% in the preceding quarter. A technical recession is defined as two straight quarters of contraction.
The euro was also lower against the pound with EUR/GBP shedding 0.46%, to hit 0.8017.
Also Friday, official data showed that the euro zone's trade surplus expanded to EUR11.3 billion in September, more than the expected rise to EUR10.6 billion, from a surplus of EUR9.9 billion the previous month.