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Forex - EUR/USD falls as dollar applauds upbeat U.S. data

Published 10/16/2014, 11:42 AM
Updated 10/16/2014, 11:43 AM
Euro slides as flurry of upbeat U.S. data gives greenback support
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Investing.com - The euro softened against the dollar on Thursday after investors applauded a fresh round of U.S. economic indicators as well as a U.S. response to handle an potential Ebola outbreak in the country.

In U.S. trading, EUR/USD was down 0.26% at 1.2801, up from a session low of 1.2706 and off a high of 1.2845.

The pair was likely to find support at 1.2623, Wednesday's low, and resistance at 1.2886, Wednesday's high.

The U.S. Department of Labor reported earlier that the number of individuals filing for initial jobless benefits in the week ending Oct. 11 fell by 23,000 to 264,000 from the previous week’s total of 287,000.

Analysts had expected jobless claims to rise by 3,000 to 290,000 last week, and the upbeat report bolstered the dollar by fueling hopes that the U.S. economy continues to recover despite potholes here and there.

On Wednesday, the dollar fell on soft U.S. retail sales and wholesale pricing reports.

Elsewhere on Thursday, data revealed that U.S. industrial production climbed 1.0% last month, beating expectations for a 0.4% rise. The August figure was revised to a 0.2% slip from a previously estimated 0.1% downtick.

In addition, the Federal Reserve of Philadelphia said its manufacturing index fell to 20.7 this month from a reading of 22.5 in September. Analysts had expected the index to decline to 20.0 in October.

The greenback also saw support after U.S. President Barack Obama said on Wednesday that the country's Center for Disease Control and Prevention would send rapid response teams to any new suspected Ebola cases in the U.S.

Mr. Obama's comments came after the infection of a second Texas healthcare worker.

Meanwhile in the euro zone, revised data earlier showed that the continent's consumer price index remained at 0.3% in September, in line with expectations.

Core CPI, which excludes food, energy, alcohol, and tobacco, ticked up to 0.8% last month from an initial estimate of 0.7%.

Still, European Central Bank officials have said they will do whatever necessary to steer the continent away from deflationary decline, comments the bolstered the greenback over the single currency on Thursday, especially as euro zone periphery bond yields dipped.

Elsewhere, the euro was down against the pound, with EUR/GBP down 0.46% at 0.7977, and down against the yen, with EUR/JPY down 0.04% at 135.90.

On Friday, the U.S. is to round up the week with reports on building permits and housing starts, as well as a preliminary report on consumer sentiment.

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