Investing.com - The euro extended losses against the U.S. dollar on Thursday, after data showing that U.S. sector activity expanded at the fastest rate since March 2011 in August added to expectations for the Federal Reserve to begin tapering its stimulus program this month.
EUR/USD hit 1.3128 during U.S. morning trade, the pair's lowest since July 19; the pair subsequently consolidated at 1.3123, declining 0.63%.
The pair was likely to find support at 1.3052, the low of July 16 and resistance at 1.3255, the high of August 30.
The Institute of Supply Management said that its non-manufacturing purchasing managers' index rose to 58.6 in August, from a reading of 56.0 the previous month, hitting ta 29-month high. Analysts had expected the index to fall to 55.0 last month.
Separately, official data showed that U.S. factory orders fell 2.4% in July, less than the expected 3.3% decline, following an upwardly revised 1.6% rise the previous month.
In addition, the Department of Labor said the number of people filing for initial jobless benefits in the week ending August 30 fell by 9,000 to a seasonally adjusted 323,000, compared to forecasts for a decline of 2,000.
The data came after an ADP report showing that 176,000 jobs were created in the U.S. private sector in August, less than the expected 180,000 increase, after a downwardly revised 198,000 rise the previous month.
The euro weakened against the dollar earlier, after European Central Bank President Mario Draghi said the central bank's monetary policy will remain accomodative for as long as necessary and that interest rates should remain at present or lower levels for an extended period of time.
Speaking at a press confrence at the end of the ECB policy meeting, Draghi also said that downide risks, including renewed geopolitical tensions, continue to weigh on the outlook for growth.
In addition, Mario Draghi said that recent growth and confidence indicators confirm gradual improvement in economic activity. The ECB revised its 2013 growth projections for the euro zone to a 0.4% contraction from a previously estimated 0.6% contraction in June.
The comments came after the ECB held its benchmark interest rate at a record-low 0.5%, in line with market expectations.
Earlier in the day, official data showed that German factory orders dropped 2.7% in July, confounding expectations for a 1% decline, following an upwardly revised 5% rise in June.
The euro was also lower against the pound with EUR/GBP shedding 0.35%, to hit 0.8422.
Also Thursday, the Bank of England held its benchmark interest rate at 0.50% and kept the size of its asset purchase program unchanged at GBP375 billion.
EUR/USD hit 1.3128 during U.S. morning trade, the pair's lowest since July 19; the pair subsequently consolidated at 1.3123, declining 0.63%.
The pair was likely to find support at 1.3052, the low of July 16 and resistance at 1.3255, the high of August 30.
The Institute of Supply Management said that its non-manufacturing purchasing managers' index rose to 58.6 in August, from a reading of 56.0 the previous month, hitting ta 29-month high. Analysts had expected the index to fall to 55.0 last month.
Separately, official data showed that U.S. factory orders fell 2.4% in July, less than the expected 3.3% decline, following an upwardly revised 1.6% rise the previous month.
In addition, the Department of Labor said the number of people filing for initial jobless benefits in the week ending August 30 fell by 9,000 to a seasonally adjusted 323,000, compared to forecasts for a decline of 2,000.
The data came after an ADP report showing that 176,000 jobs were created in the U.S. private sector in August, less than the expected 180,000 increase, after a downwardly revised 198,000 rise the previous month.
The euro weakened against the dollar earlier, after European Central Bank President Mario Draghi said the central bank's monetary policy will remain accomodative for as long as necessary and that interest rates should remain at present or lower levels for an extended period of time.
Speaking at a press confrence at the end of the ECB policy meeting, Draghi also said that downide risks, including renewed geopolitical tensions, continue to weigh on the outlook for growth.
In addition, Mario Draghi said that recent growth and confidence indicators confirm gradual improvement in economic activity. The ECB revised its 2013 growth projections for the euro zone to a 0.4% contraction from a previously estimated 0.6% contraction in June.
The comments came after the ECB held its benchmark interest rate at a record-low 0.5%, in line with market expectations.
Earlier in the day, official data showed that German factory orders dropped 2.7% in July, confounding expectations for a 1% decline, following an upwardly revised 5% rise in June.
The euro was also lower against the pound with EUR/GBP shedding 0.35%, to hit 0.8422.
Also Thursday, the Bank of England held its benchmark interest rate at 0.50% and kept the size of its asset purchase program unchanged at GBP375 billion.