Investing.com - The euro hit a session high against the U.S. dollar on Thursday, after official data showed that initial jobless claims fell significantly more-than-expected last week.
EUR/USD hit 1.2935 during European afternoon trade, the pair’s highest since Tuesday; the pair subsequently consolidated at 1.2925, gaining 0.38%.
The pair was likely to find support at 1.2824, the session low and eight-day low and resistance at 1.2990, Tuesday’s high.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 30,000 to a seasonally adjusted 339,000, compared to expectations for an increase of 1,000 to 370,000.
The previous week’s figure was revised up to 369,000 from a previously reported 367,000.
Sentiment on the euro was also bolstered by optimism that a downgrade on Spain by ratings agency Standard & Poor’s would force the country into requesting a formal bailout.
S&P cut the country’s credit rating to BBB-minus with a negative outlook late Wednesday, just one notch above junk status, citing “mounting risks to Spain’s public finances.”
The ratings agency also warned that the capacity of Spanish political institutions to deal with the challenges presented by the current fiscal and economic crisis is declining.
The euro extended gains against the pound and the yen, with EUR/GBP up 0.19% to 0.8059 and EUR/JPY rallying 0.89% to 101.55.
Also Thursday, the Commerce Department said the U.S. trade deficit widened to USD44.2 billion in August, broadly in line with market expectations, as imports outpaced exports.
EUR/USD hit 1.2935 during European afternoon trade, the pair’s highest since Tuesday; the pair subsequently consolidated at 1.2925, gaining 0.38%.
The pair was likely to find support at 1.2824, the session low and eight-day low and resistance at 1.2990, Tuesday’s high.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 30,000 to a seasonally adjusted 339,000, compared to expectations for an increase of 1,000 to 370,000.
The previous week’s figure was revised up to 369,000 from a previously reported 367,000.
Sentiment on the euro was also bolstered by optimism that a downgrade on Spain by ratings agency Standard & Poor’s would force the country into requesting a formal bailout.
S&P cut the country’s credit rating to BBB-minus with a negative outlook late Wednesday, just one notch above junk status, citing “mounting risks to Spain’s public finances.”
The ratings agency also warned that the capacity of Spanish political institutions to deal with the challenges presented by the current fiscal and economic crisis is declining.
The euro extended gains against the pound and the yen, with EUR/GBP up 0.19% to 0.8059 and EUR/JPY rallying 0.89% to 101.55.
Also Thursday, the Commerce Department said the U.S. trade deficit widened to USD44.2 billion in August, broadly in line with market expectations, as imports outpaced exports.