Investing.com - The euro slumped against the dollar on Friday as expectations continued to build that the Federal Reserve is ready to begin tapering its USD85 billion in monthly bond purchases, possibly next week, especially after U.S. wholesale pricing data met expectations.
Fed bond purchases seek to spur recovery by depressing long-term interest rates, weakening the dollar as long as they remain in effect.
In U.S. trading on Friday, EUR/USD was down 0.19% at 1.3728, up from a session low of 1.3710 and off from a high of 1.3769.
The pair was likely to find support at 1.3695, Monday's low, and resistance at 1.3811, Wednesday's high.
The Labor Department reported earlier that the U.S. producer price index fell 0.1% last month, in line with expectations, after a 0.2% decline in October.
Core producer price inflation, which excludes food and energy, rose 0.1% in November, as expected, after a 0.2% increase the previous month, also in line with consensus forecasts.
Investors interpreted the data as another cue to prompt the Fed to begin tapering its USD85 billion a month asset purchase program at its Dec. 17-18 policy meeting or in early 2014.
Meanwhile in Europe, Eurostat, the statistical arm of the European Union, reported that employment fell by 0.8% in the euro area in the third quarter, in line with expectations.
The euro saw some demand as expectations for further monetary easing continued to wane after the European Central Bank left monetary policy unchanged at its meeting this month following a surprise rate cut in November.
The single currency was up against the pound and down against the yen, with EUR/GBP trading up 0.15% at 0.8425 and EUR/JPY trading down 0.33% at 141.73.
Fed bond purchases seek to spur recovery by depressing long-term interest rates, weakening the dollar as long as they remain in effect.
In U.S. trading on Friday, EUR/USD was down 0.19% at 1.3728, up from a session low of 1.3710 and off from a high of 1.3769.
The pair was likely to find support at 1.3695, Monday's low, and resistance at 1.3811, Wednesday's high.
The Labor Department reported earlier that the U.S. producer price index fell 0.1% last month, in line with expectations, after a 0.2% decline in October.
Core producer price inflation, which excludes food and energy, rose 0.1% in November, as expected, after a 0.2% increase the previous month, also in line with consensus forecasts.
Investors interpreted the data as another cue to prompt the Fed to begin tapering its USD85 billion a month asset purchase program at its Dec. 17-18 policy meeting or in early 2014.
Meanwhile in Europe, Eurostat, the statistical arm of the European Union, reported that employment fell by 0.8% in the euro area in the third quarter, in line with expectations.
The euro saw some demand as expectations for further monetary easing continued to wane after the European Central Bank left monetary policy unchanged at its meeting this month following a surprise rate cut in November.
The single currency was up against the pound and down against the yen, with EUR/GBP trading up 0.15% at 0.8425 and EUR/JPY trading down 0.33% at 141.73.