Investing.com - The dollar firmed against the euro on Thursday after better-than-expected U.S. service-sector and labor-market data hit the wire and sent investors chasing greenback positions on the notion that the Federal Reserve remains on course to taper stimulus programs this month.
In U.S. trading on Thursday, EUR/USD was down 0.64% at 1.3122, up from a session low of 1.3111 and off from a high of 1.3223.
The pair was likely to find support at 1.3068, the low from July 16, and resistance at 1.3227, Monday's high.
The Institute of Supply Management reported earlier that its non-manufacturing purchasing managers' index hit a 29-month high of 58.6 in August from 56.0 in July.
Analysts were expecting the index to fall to 55.0 last month.
The numbers sparked demand for the dollar by fueling sentiments that the Federal Reserve may announce at its Sept. 17-18 policy meeting a decision to begin winding down its USD85 billion in monthly bond purchases, which weaken the greenback to spur recovery.
Better-than-expected economic indicators out of the manufacturing and labor market bolstered dollar demand as well.
Official data showed that U.S. factory orders fell 2.4% in July, less than an expected 3.3% decline, following an upwardly revised 1.6% rise the previous month.
The Department of Labor, meanwhile, reported that the number of individuals filing for initial jobless benefits in the week ending Aug. 30 fell by 9,000 to 323,000, outpacing forecasts for a decline of 2,000.
Investors took in stride an ADP report showing that 176,000 jobs were created in the U.S. private sector in August, less than an expected 180,000 increase after a downwardly revised 198,000 rise the previous month.
Across the Atlantic, the European Central Bank left benchmark interest rates unchanged at 0.50%, in line with expectations.
The euro came under pressure after European Central Bank President Mario Draghi told a press conference that monetary policy will remain loose for as long as necessary, adding that interest rates should remain at present or possibly lower levels for an extended period of time.
Also in Europe, Germany reported that the country's factory orders dropped 2.7% in July compared to expectations for a 1% decline, following an upwardly revised 0.5% rise in June.
Elsewhere, the euro was down against the pound and down against the yen, with EUR/GBP trading down 0.42% at 0.8416 and EUR/JPY trading down 0.38% at 131.22.
As expected, 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.
At the end of its two-day policy meeting, the Bank of Japan said it was sticking to its commitment to expand the country's monetary base at an annual pace of JPY60 trillion to JPY70 trillion, leaving policy unchanged.
On Friday, Germany is to release official data on the trade balance and industrial production.
The U.S. is to round up the week with closely watched government data on nonfarm payrolls and the unemployment rate, as well as data on average hourly earnings.
In U.S. trading on Thursday, EUR/USD was down 0.64% at 1.3122, up from a session low of 1.3111 and off from a high of 1.3223.
The pair was likely to find support at 1.3068, the low from July 16, and resistance at 1.3227, Monday's high.
The Institute of Supply Management reported earlier that its non-manufacturing purchasing managers' index hit a 29-month high of 58.6 in August from 56.0 in July.
Analysts were expecting the index to fall to 55.0 last month.
The numbers sparked demand for the dollar by fueling sentiments that the Federal Reserve may announce at its Sept. 17-18 policy meeting a decision to begin winding down its USD85 billion in monthly bond purchases, which weaken the greenback to spur recovery.
Better-than-expected economic indicators out of the manufacturing and labor market bolstered dollar demand as well.
Official data showed that U.S. factory orders fell 2.4% in July, less than an expected 3.3% decline, following an upwardly revised 1.6% rise the previous month.
The Department of Labor, meanwhile, reported that the number of individuals filing for initial jobless benefits in the week ending Aug. 30 fell by 9,000 to 323,000, outpacing forecasts for a decline of 2,000.
Investors took in stride an ADP report showing that 176,000 jobs were created in the U.S. private sector in August, less than an expected 180,000 increase after a downwardly revised 198,000 rise the previous month.
Across the Atlantic, the European Central Bank left benchmark interest rates unchanged at 0.50%, in line with expectations.
The euro came under pressure after European Central Bank President Mario Draghi told a press conference that monetary policy will remain loose for as long as necessary, adding that interest rates should remain at present or possibly lower levels for an extended period of time.
Also in Europe, Germany reported that the country's factory orders dropped 2.7% in July compared to expectations for a 1% decline, following an upwardly revised 0.5% rise in June.
Elsewhere, the euro was down against the pound and down against the yen, with EUR/GBP trading down 0.42% at 0.8416 and EUR/JPY trading down 0.38% at 131.22.
As expected, 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.
At the end of its two-day policy meeting, the Bank of Japan said it was sticking to its commitment to expand the country's monetary base at an annual pace of JPY60 trillion to JPY70 trillion, leaving policy unchanged.
On Friday, Germany is to release official data on the trade balance and industrial production.
The U.S. is to round up the week with closely watched government data on nonfarm payrolls and the unemployment rate, as well as data on average hourly earnings.