Investing.com - The euro edged up to hit fresh two-year highs against the U.S. dollar on Friday, as growing expectations for the Federal Reserve to delay scaling back its bond-buying program sent the greenback broadly lower.
EUR/USD hit 1.3833 during late Asian trade, the pair's highest since October 2011; the pair subsequently consolidated at 1.3813, adding 0.09%.
The pair was likely to find support at 1.3792, the low of October 22 and resistance at 1.4246, the high of October 1, 2011.
The greenback remained under pressure after disappointing U.S. employment reports added to expectations that the Fed will delay tapering its stimulus program until next year amid concerns over the impact of the 16-day U.S. government shutdown on the economic recovery.
On Thursday, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits declined by 12,000 last week to a seasonally adjusted 350,000. Analysts had expected U.S. jobless claims to fall by 22,000 to 340,000 last week.
The report came after data earlier in the week showed that U.S. jobs growth slowed in September.
Meanwhile, sentiment on the euro remained fragile after data on euro zone manufacturing and services activity released on Thursday indicated that the recovery in the region remains sluggish.
The preliminary reading of the euro zone’s manufacturing purchasing managers’ index ticked up to 51.3 in October from a final reading of 51.1 in September, slightly below expectations for a reading of 51.4.
The euro zone services PMI fell to 50.9 this month from 52.2 in September.
The euro was steady against the pound with EUR/GBP inching up 0.03%, to hit 0.8521.
Later in the day, the Ifo institute was to release a report on German business climate. The U.S. was to produce data on durable goods orders, as well as revised data on consumer sentiment from the University of Michigan.
EUR/USD hit 1.3833 during late Asian trade, the pair's highest since October 2011; the pair subsequently consolidated at 1.3813, adding 0.09%.
The pair was likely to find support at 1.3792, the low of October 22 and resistance at 1.4246, the high of October 1, 2011.
The greenback remained under pressure after disappointing U.S. employment reports added to expectations that the Fed will delay tapering its stimulus program until next year amid concerns over the impact of the 16-day U.S. government shutdown on the economic recovery.
On Thursday, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits declined by 12,000 last week to a seasonally adjusted 350,000. Analysts had expected U.S. jobless claims to fall by 22,000 to 340,000 last week.
The report came after data earlier in the week showed that U.S. jobs growth slowed in September.
Meanwhile, sentiment on the euro remained fragile after data on euro zone manufacturing and services activity released on Thursday indicated that the recovery in the region remains sluggish.
The preliminary reading of the euro zone’s manufacturing purchasing managers’ index ticked up to 51.3 in October from a final reading of 51.1 in September, slightly below expectations for a reading of 51.4.
The euro zone services PMI fell to 50.9 this month from 52.2 in September.
The euro was steady against the pound with EUR/GBP inching up 0.03%, to hit 0.8521.
Later in the day, the Ifo institute was to release a report on German business climate. The U.S. was to produce data on durable goods orders, as well as revised data on consumer sentiment from the University of Michigan.