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Forex - EUR/USD gains on solid U.S. industrial production data

Published 12/14/2012, 01:19 PM
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Investing.com - Solid U.S. industrial production and manufacturing data enticed investors out of the safe-haven dollar and into higher-yielding assets on Friday, which sent the euro gaining to a near 3-month high against the greenback.

In U.S. trading on Friday, EUR/USD was trading up 0.67% at 1.3165, up from a session low of 1.3067, and off from a high of 1.3174.

The pair was likely to find support at 1.2067, the earlier low, and resistance at 1.3174, the earlier high.

The Federal Reserve reported earlier that U.S. industrial production beat expectations in November, expanding 1.1% after a 0.7% decline in October.

Analysts had expected industrial production to rise 0.3% in November.

Elsewhere, the Markit research group reported that the U.S. manufacturing purchasing managers' index climbed to a preliminary 54.2 in December, its best performance since April, from 52.8 in November, beating market forecasts for a decline to 52.6.

Meanwhile, the U.S. Bureau of Labor Statistics reported earlier that the country's consumer price index decreased by 0.3% in November from October, more than expectations for a 0.2% contraction and off from a 0.1% rise the previous month.

The U.S. core consumer price index, which excludes more volatile food and energy costs, rose 0.1% last month, missing expectations for a 0.2% rise and off from a 0.2% increase in October.

In Europe, Markit added that its flash eurozone manufacturing PMI came to 46.3 in December from 46.2 in November, a nine-month high, missing expectations for a reading of 46.6.

The eurozone's flash service-sector purchasing managers' index gained to 47.8 in December from 46.7 in November, beating expectations for a rise to 47.0.

Germany's manufacturing PMI slipped to 46.3 in December from 46.8 the previous month, while analysts were expecting the index to improve to 47.2.

The eurozone's consumer price index remained unchanged last month, official data showed on Friday.

In a report, Eurostat said that eurozone CPI remained unchanged at a seasonally adjusted annual rate of 2.2%, in line with expectations.

Meanwhile, the change in the number of employed people in the eurozone fell in November.

In a report, Eurostat said number of employed persons decreased by 0.2% in the euro area in the third quarter of 2012 compared with the previous quarter,

Analysts had expected the eurozone employment change to remain unchanged.

The euro, meanwhile, was up against the pound and up against the yen, with EUR/GBP trading up 0.31% at 0.8141, and EUR/JPY trading up 0.35% at 109.78.







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