Investing.com - The euro pushed up against two-hear highs against the dollar on Thursday after the U.S. government reported that more individuals filed for initial jobless assistance than expected last week, though soft output gauges in Europe weighed on the single currency.
In U.S. trading on Thursday, EUR/USD was up 0.23% at 1.3808, up from a session low of 1.3764 and off from a high of 1.3825.
The pair was likely to find support at 1.3652, Monday's low, and resistance at 1.3858, the high from Nov. 9, 2011.
The Department of Labor reported earlier that the number of individuals filing for initial jobless benefits declined by 12,000 to a seasonally adjusted 350,000. Analysts had expected U.S. jobless claims to fall by 22,000 to 340,000 last week.
Earlier this week, the Department of Labor reported that U.S. economy added 148,000 jobs in September, well below expectations for an increase of 180,000.
After digesting the latest data, investors avoided the dollar amid expectations for the Federal Reserve to continue stimulating the economy with its USD85 billion in monthly bond purchases that drive down interest rates to spur recovery, weakening the greenback in the process.
Many in recent weeks were expecting the Fed to announce plans to taper its asset purchases in late October or early December, though soft jobs data now have market watchers pushing back estimates for a start date to tapering into 2014.
Elsewhere, a separate report showed that the U.S. trade deficit widened 0.4% to a seasonally adjusted USD38.8 billion in August from a deficit of USD38.6 billion in July. Economists had forecast a deficit of USD39.5 billion.
Capping the euro's gains, however, were soft manufacturing and service-sector reports out of Europe.
The preliminary reading of the euro zone’s manufacturing purchasing managers’ index ticked up to 51.3 in October from a final reading of 51.1 in September, below expectations for a reading of 51.4.
The euro zone services PMI fell to 50.9 this month from 52.2 in September, defying expectations for a 52.4 reading.
Germany’s manufacturing PMI edged up to 51.5 from a final reading of 51.1 in September, in line with expectations, but the country's services PMI declined to a three-month low of 52.3, missing market calls for a 53.9 reading..
The euro was up against the pound and up against the yen, with EUR/GBP trading up 0.05% at 0.8528 and EUR/JPY trading up 0.21% at 134.47.
On Friday, the Ifo institute is to release a report on German business climate, a leading indicator of economic health.
The U.S. is to round up the week with data on durable goods orders, a leading indicator of production, as well as revised data on consumer sentiment from the University of Michigan.
In U.S. trading on Thursday, EUR/USD was up 0.23% at 1.3808, up from a session low of 1.3764 and off from a high of 1.3825.
The pair was likely to find support at 1.3652, Monday's low, and resistance at 1.3858, the high from Nov. 9, 2011.
The Department of Labor reported earlier that the number of individuals filing for initial jobless benefits declined by 12,000 to a seasonally adjusted 350,000. Analysts had expected U.S. jobless claims to fall by 22,000 to 340,000 last week.
Earlier this week, the Department of Labor reported that U.S. economy added 148,000 jobs in September, well below expectations for an increase of 180,000.
After digesting the latest data, investors avoided the dollar amid expectations for the Federal Reserve to continue stimulating the economy with its USD85 billion in monthly bond purchases that drive down interest rates to spur recovery, weakening the greenback in the process.
Many in recent weeks were expecting the Fed to announce plans to taper its asset purchases in late October or early December, though soft jobs data now have market watchers pushing back estimates for a start date to tapering into 2014.
Elsewhere, a separate report showed that the U.S. trade deficit widened 0.4% to a seasonally adjusted USD38.8 billion in August from a deficit of USD38.6 billion in July. Economists had forecast a deficit of USD39.5 billion.
Capping the euro's gains, however, were soft manufacturing and service-sector reports out of Europe.
The preliminary reading of the euro zone’s manufacturing purchasing managers’ index ticked up to 51.3 in October from a final reading of 51.1 in September, below expectations for a reading of 51.4.
The euro zone services PMI fell to 50.9 this month from 52.2 in September, defying expectations for a 52.4 reading.
Germany’s manufacturing PMI edged up to 51.5 from a final reading of 51.1 in September, in line with expectations, but the country's services PMI declined to a three-month low of 52.3, missing market calls for a 53.9 reading..
The euro was up against the pound and up against the yen, with EUR/GBP trading up 0.05% at 0.8528 and EUR/JPY trading up 0.21% at 134.47.
On Friday, the Ifo institute is to release a report on German business climate, a leading indicator of economic health.
The U.S. is to round up the week with data on durable goods orders, a leading indicator of production, as well as revised data on consumer sentiment from the University of Michigan.