Investing.com - The euro is trading higher against the U.S. dollar during Friday’s session, exhibiting modest strength even while a couple of reports indicate the economic growth outlook for the euro zone is still dismal.
In Asian trading Friday, EUR/USD rose 0.06% to 1.3111. The pair was likely to find support at 1.2969, Monday's low, and resistance at 1.3162, the high from Feb. 27.
The common currency climbed against the greenback after the International Monetary Fund’s World Economic Outlook, in which it pared estimate for U.S. GDP growth this year to 1.7% from a previous estimate of 2%. The IMF also cut its estimate for global growth to 3.4% from 3.5%.
The IMF added that it expects the euro zone’s GDP to contract 0.2% this year, citing uncertainly from Italy’s election results earlier this year. Italy is the region’s third-largest economy.
Elsewhere, a Reuters poll of 60 economists indicates those surveyed are growing more pessimistic on the outlook for the euro zone. Those polled expect euro zone GDP to contract by 0.4% this year, a noticeable change from the previous forecast of 0.1% contraction given three months ago.
In that same poll, 19 of 25 economists said they believe the European Central Bank will take some action to cope with the effects of the region’s poor economy. The poll also showed euro zone unemployment will reach 12.4% later this year up from the record 12% seen in February.
Meanwhile, EUR/JPY fell 0.05% to 130.53. The pair sought to test support at 129.71, the earlier low, and resistance at 133.65, the high from Jan. 14, 2010.
EUR/GBP is off 0.01% at 0.8517 while EUR/AUD is up 0.06% at 1.2434. The euro zone will publish official data on industrial production later today.
In Asian trading Friday, EUR/USD rose 0.06% to 1.3111. The pair was likely to find support at 1.2969, Monday's low, and resistance at 1.3162, the high from Feb. 27.
The common currency climbed against the greenback after the International Monetary Fund’s World Economic Outlook, in which it pared estimate for U.S. GDP growth this year to 1.7% from a previous estimate of 2%. The IMF also cut its estimate for global growth to 3.4% from 3.5%.
The IMF added that it expects the euro zone’s GDP to contract 0.2% this year, citing uncertainly from Italy’s election results earlier this year. Italy is the region’s third-largest economy.
Elsewhere, a Reuters poll of 60 economists indicates those surveyed are growing more pessimistic on the outlook for the euro zone. Those polled expect euro zone GDP to contract by 0.4% this year, a noticeable change from the previous forecast of 0.1% contraction given three months ago.
In that same poll, 19 of 25 economists said they believe the European Central Bank will take some action to cope with the effects of the region’s poor economy. The poll also showed euro zone unemployment will reach 12.4% later this year up from the record 12% seen in February.
Meanwhile, EUR/JPY fell 0.05% to 130.53. The pair sought to test support at 129.71, the earlier low, and resistance at 133.65, the high from Jan. 14, 2010.
EUR/GBP is off 0.01% at 0.8517 while EUR/AUD is up 0.06% at 1.2434. The euro zone will publish official data on industrial production later today.