Forex - EUR/USD falls on euro debt fears

Investing.com - The euro traded lower against the U.S. dollar Friday, falling for the first time in three days, as worries that the European Central Bank may need to restart its bond purchase program causing intensified debt concerns depressed the single currency.

EUR/USD traded at 1.3162 down 0.20% in U.S. early morning trade.

The pair was likely to find support at 1.3065, Wednesday’s low and short-term resistance at 1.3357, the high of March 31st.

Fears of the ECB resuming its bond repurchase program were triggered as Spanish government bonds moved toward a second - straight weekly decline signaling the break in the debt crisis created by the ECB’s unlimited three year loans program may be ending.

German bunds, the euro zone benchmark government securities, advanced for the first time in three days.

Adding to the single currency bearishness, seventeen of the 22 economists surveyed by Bloomberg forecast that the ECB will be forced to resume its Securities Market Program to contain bond yields.

On Thursday, dampening greenback enthusiasm, the number of people who filed for unemployment assistance in the U.S. last week rose unexpectedly according to governmental data..

In a report, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week rose to a seasonally adjusted 380K, from 367K in the preceding week whose figure was revised up from 357K.

Analysts had expected initial jobless claims to fall to 355K last week. In addition, the U.S. trade balance fell less-than-expected last month.

In a report, Bureau of Economic Analysis stated that U.S. trade balance dropped to a seasonally adjusted -46.0B, from -52.5B in the preceding month whose figure was revised up from -52.6B.

Analysts had expected U.S. trade balance to fall -52.0B last month.

The euro traded slightly lower against the pound with EUR/GBP  falling 0.06% to hit 0.8259 and slipped against the yen, with EUR/JPY  down 0.08% to hit 106.59.