Investing.com - The euro firmed against the dollar on Thursday after hit-or-miss data in the U.S. kept expectations going for a 2014 start date for a Federal Reserve decision to wind down stimulus programs.
Meanwhile in Europe, European Central Bank President Mario Draghi downplayed prospect of negative interest rates, which gave the single currency support.
In U.S. trading on Thursday, EUR/USD was up 0.24% at 1.3472, up from a session low of 1.3399 and off from a high of 1.3478.
The pair was likely to find support at 1.3298, the low from Nov. 7, and resistance at 1.3578, Tuesday's high.
The dollar softened after data revealed that manufacturing activity in the Philadelphia region expanded at the slowest pace in six months in November.
The Federal Reserve Bank of Philadelphia said that its manufacturing index fell to 6.5 in November from 19.8 in October.
Economists had expected the index to decline to 15.0.
The employment component of the index dropped to 1.1 from a reading of 15.1 last month.
The data fanned market expectations for the Federal Reserve to announce plans to taper the pace of its USD85 billion in monthly asset purchases in early 2014 as opposed to December.
Fed bond purchases drive down long-term interest rates to spur recovery, weakening the dollar as long as they remain in place.
The minutes of the Fed's October policy meeting released on Wednesday revealed monetary authorities see conditions meriting reduced bond purchases will appear in the "coming months."
Elsewhere, the Department of Labor said the number of individuals filing for initial jobless benefits in the U.S. last week fell by 21,000 to a seasonally adjusted 323,000, beating expectations for a decline of 9,000, which cushioned the dollar somewhat.
Separate government data revealed that the U.S. producer price index declined 0.2% in October, in line with expectations, while the country's core PPI rose 0.2%, beating market calls for a 0.1% gain.
Meanwhile in Europe, ECB President Mario Draghi downplayed recent media reports that the ECB was actively considering whether to cut deposit rates into negative territory.
Also in Europe, data released earlier revealed that manufacturing activity in the euro zone expanded in line with forecasts in November, but service sector activity declined unexpectedly, indicating that the recovery in the bloc is losing momentum.
London-based Markit Economics reported that the euro zone’s manufacturing purchasing managers’ index ticked up to 51.5 in November from a final reading of 51.3 in October, in line with market expectations.
The currency bloc’s services PMI declined to 50.9 this month from 51.6 in October, disappointing expectations for an increase to 51.9.
The single currency was down against the pound and up against the yen, with EUR/GBP trading down 0.10% at 0.8338 and EUR/JPY trading up 1.14% at 135.98.
On Friday, the Ifo Institute is to publish a report on German business climate, a leading indicator of economic health.
Meanwhile in Europe, European Central Bank President Mario Draghi downplayed prospect of negative interest rates, which gave the single currency support.
In U.S. trading on Thursday, EUR/USD was up 0.24% at 1.3472, up from a session low of 1.3399 and off from a high of 1.3478.
The pair was likely to find support at 1.3298, the low from Nov. 7, and resistance at 1.3578, Tuesday's high.
The dollar softened after data revealed that manufacturing activity in the Philadelphia region expanded at the slowest pace in six months in November.
The Federal Reserve Bank of Philadelphia said that its manufacturing index fell to 6.5 in November from 19.8 in October.
Economists had expected the index to decline to 15.0.
The employment component of the index dropped to 1.1 from a reading of 15.1 last month.
The data fanned market expectations for the Federal Reserve to announce plans to taper the pace of its USD85 billion in monthly asset purchases in early 2014 as opposed to December.
Fed bond purchases drive down long-term interest rates to spur recovery, weakening the dollar as long as they remain in place.
The minutes of the Fed's October policy meeting released on Wednesday revealed monetary authorities see conditions meriting reduced bond purchases will appear in the "coming months."
Elsewhere, the Department of Labor said the number of individuals filing for initial jobless benefits in the U.S. last week fell by 21,000 to a seasonally adjusted 323,000, beating expectations for a decline of 9,000, which cushioned the dollar somewhat.
Separate government data revealed that the U.S. producer price index declined 0.2% in October, in line with expectations, while the country's core PPI rose 0.2%, beating market calls for a 0.1% gain.
Meanwhile in Europe, ECB President Mario Draghi downplayed recent media reports that the ECB was actively considering whether to cut deposit rates into negative territory.
Also in Europe, data released earlier revealed that manufacturing activity in the euro zone expanded in line with forecasts in November, but service sector activity declined unexpectedly, indicating that the recovery in the bloc is losing momentum.
London-based Markit Economics reported that the euro zone’s manufacturing purchasing managers’ index ticked up to 51.5 in November from a final reading of 51.3 in October, in line with market expectations.
The currency bloc’s services PMI declined to 50.9 this month from 51.6 in October, disappointing expectations for an increase to 51.9.
The single currency was down against the pound and up against the yen, with EUR/GBP trading down 0.10% at 0.8338 and EUR/JPY trading up 1.14% at 135.98.
On Friday, the Ifo Institute is to publish a report on German business climate, a leading indicator of economic health.