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Forex - EUR/USD hits 6-day low after poor euro zone retail data

Published 01/06/2011, 06:03 AM
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Investing.com – The euro extended early losses against the U.S. dollar on Thursday, following official data showing that retail sales in the single currency bloc fell unexpectedly in November.

EUR/USD hit 1.3091 during European morning trade, the pair’s lowest since December 29; the pair subsequently consolidated at 1.3104, shedding 0.32%.

The pair was likely to find support at 1.297, the low of December 1 and an 11-week low and resistance at 1.3238, the high of December 29.

Eurostat said retail sales fell by 0.8% in November from a month earlier, the sharpest monthly fall since April, confounding expectations for a 0.3% monthly increase and were just 0.1% higher than in November 2009.

Retail sales fell 0.2% month to month in Ireland, 0.3% in Spain, and 4.2% in Portugal. In contrast, retail sales rose 0.9% in France, the region's second-biggest economy.

November figures weren't available for Germany, but in October retail sales there rose 0.1% from a month earlier.

The euro was also down against sterling, with EUR/GBP slipping 0.07% to hit 0.8468.

Later in the day, the U.S. was to publish official data on initial jobless claims.

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