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Forex - EUR/USD falls to 1-week lows amid Greek jitters

Published 02/20/2015, 07:12 AM
© Reuters.  Euro drops against dollar as Greece concerns continue to weigh
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Investing.com - The euro fell to one-week lows against the U.S. dollar on Friday, despite positive euro zone data as concerns over the Greek debt crisis continued to dampen demand for the single currency.

EUR/USD hit 1.1303 during European afternoon trade, the pair's lowest since February 11; the pair subsequently consolidated at 1.1321, declining 0.41%.

The pair was likely to find support at 1.1268, the low of February 9 and resistance at 1.1449, Thursday's high.

Sentiment on the euro remained fragile as investors remained cautious as another round of talks with eurozone finance ministers was set to take place on Friday after Germany rejected a proposed bailout extension request from Greece.

The Greek request included a pledge to maintain "fiscal balance" for a six-month period, in order to give it time to reach a new agreement on growth over the next four years with its partners in the euro zone, Reuters reported.

But German Finance Minister Wolfgang Schaeuble said it was "not a substantial proposal for a solution" and did not meet the criteria agreed on at the euro group meeting of euro zone finance ministers on Monday.

Earlier Friday, research group Markit said that the euro zone's preliminary composite purchasing managers' index rose to 53.5 this month from 52.6 in January, beating expectations for a reading of 53.0.

Germany's preliminary manufacturing PMI remained unchanged at 50.9 in February, disappointing expectations for a rise to 51.5, while the services PMI rose to 55.5 this month from a reading of 54.0 in January, compared to expectations for an increase to 54.2.

In France, the preliminary manufacturing PMI slipped to 47.7 this month from 49.2 in January, while the services PMI rose to 53.4 in February from 49.4 last month, exceeding expectations for an increase to 49.8.

The euro was also lower against the pound, with EUR/GBP easing 0.09% to 0.7368.

In the U.K., the Office for National Statistics said retail sales rose fell 0.3% in January, compared to expectations for a 0.2% downtick. December's figure was revised to a 0.2% gain from a previously estimated increase of 0.4%.

Year-on-year, U.K. retail sales rose at a rate of 4.8% last month, below expectations for a 5.9% increase and after a downwardly revised 3.8% gain in December.

A separate report showed that U.K. public sector net borrowing dropped by £9.40 billion January, more than the expected decline of £7.80 billion. December's figure was revised to a £9.87 rise from a previously estimated £12.47 increase.

Later in the day, the U.S. was to release preliminary data on manufacturing activity.

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