Investing.com - The euro remained higher against the dollar on Thursday, following the release of mixed U.S. economic data after European Central Bank President Mario Draghi played down prospects for negative deposit rates in the euro zone.
EUR/USD rose 0.21% to 1.3465, recovering from session lows of 1.3399 during U.S. morning trade.
The pair was likely to find support at 1.3389, the low of November 13 and resistance at 1.3500.
Speaking in Germany, Draghi downplayed speculation that the ECB was actively considering whether to cut deposit rates into negative territory.
Data released earlier on Thursday showed 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.
The dollar softened after data showed 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 dollar had been boosted earlier after the Department of Labor said the number of people 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.
A separate report showed that U.S. producer price inflation declined 0.2% in October, in line with expectations.
The reports came a day after the minutes of the Federal Reserve’s October meeting indicated that the bank could start scaling back its stimulus program in the “coming months” if the economy continues to improve as expected.
The euro rose to fresh four-year highs against the broadly weaker yen, with EUR/JPY surging 1.11% to 135.92.
Elsewhere, the dollar traded up to four-month highs against the yen, with USD/JPY up 0.87% to 100.90, the highest level since July 10.
EUR/USD rose 0.21% to 1.3465, recovering from session lows of 1.3399 during U.S. morning trade.
The pair was likely to find support at 1.3389, the low of November 13 and resistance at 1.3500.
Speaking in Germany, Draghi downplayed speculation that the ECB was actively considering whether to cut deposit rates into negative territory.
Data released earlier on Thursday showed 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.
The dollar softened after data showed 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 dollar had been boosted earlier after the Department of Labor said the number of people 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.
A separate report showed that U.S. producer price inflation declined 0.2% in October, in line with expectations.
The reports came a day after the minutes of the Federal Reserve’s October meeting indicated that the bank could start scaling back its stimulus program in the “coming months” if the economy continues to improve as expected.
The euro rose to fresh four-year highs against the broadly weaker yen, with EUR/JPY surging 1.11% to 135.92.
Elsewhere, the dollar traded up to four-month highs against the yen, with USD/JPY up 0.87% to 100.90, the highest level since July 10.