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Forex - EUR/USD extends losses on Greece concerns, U.S. data

Published 02/20/2015, 09:47 AM
Euro pushes lower against dollar after upbeat U.S. manufacturing report
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Investing.com - The euro extended losses against the U.S. dollar on Friday, as concerns over Greece's debt crisis continued to weigh and an upbeat report on U.S. manufacturing activity lent further support to the greenback.

EUR/USD hit 1.1280 during U.S. morning trade, the pair's lowest since February 11; the pair subsequently consolidated at 1.1295, declining 0.64%.

The pair was likely to find support at 1.1223, the low of January 27 and resistance at 1.1449, Thursday's high.

Sentiment on the euro remained fragile as another round of talks with eurozone finance ministers was set to take place on Friday after Germany rejected a proposed bailout extension request from Greece.

The Greek request included a pledge to maintain "fiscal balance" for a six-month period, in order to give it time to reach a new agreement on growth over the next four years with its partners in the euro zone, Reuters reported.

But German Finance Minister Wolfgang Schaeuble said it was "not a substantial proposal for a solution" and did not meet the criteria agreed on at the euro group meeting of euro zone finance ministers on Monday.

Earlier Friday, research group Markit said that the euro zone's preliminary composite purchasing managers' index rose to 53.5 this month from 52.6 in January, beating expectations for a reading of 53.0.

Germany's preliminary manufacturing PMI remained unchanged at 50.9 in February, disappointing expectations for a rise to 51.5, while the services PMI rose to 55.5 this month from a reading of 54.0 in January, compared to expectations for an increase to 54.2.

In France, the preliminary manufacturing PMI slipped to 47.7 this month from 49.2 in January, while the services PMI rose to 53.4 in February from 49.4 last month, exceeding expectations for an increase to 49.8.

Meanwhile, preliminary data showed that the U.S. manufacturing PMI rose to 54.3 this month from 53.9 in January, beating expectations for a fall to 53.6.

The euro was also lower against the pound, with EUR/GBP shedding 0.27% to 0.7354.

In the U.K., the Office for National Statistics said retail sales rose fell 0.3% in January, compared to expectations for a 0.2% downtick. December's figure was revised to a 0.2% gain from a previously estimated increase of 0.4%.

Year-on-year, U.K. retail sales rose at a rate of 4.8% last month, below expectations for a 5.9% increase and after a downwardly revised 3.8% gain in December.

A separate report showed that U.K. public sector net borrowing dropped by £9.40 billion January, more than the expected decline of £7.80 billion. December's figure was revised to a £9.87 rise from a previously estimated £12.47 increase.

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