Investing.com - The euro fell to two-week lows against the dollar on Thursday after U.S. economic data boosted expectations that the Federal Reserve will soon start to phase out its stimulus program.
EUR/USD hit 1.3205 during U.S. morning trade, the lowest since August 2; the pair subsequently consolidated at 1.3220, shedding 0.26%.
The pair was likely to find support at 1.3164, the low of July 25 and resistance at 1.3279, Wednesday’s high.
The greenback strengthened broadly after the Department of Labor said the number of people who filed for unemployment assistance in the U.S. fell to the lowest level since January 2008 last week, dropping by 15,000 to 320,000.
A separate report showed that U.S. consumer prices rose by a seasonally adjusted 0.2% in July, in line with forecasts. Core consumer prices, excluding food and energy costs, also rose 0.2%, matching forecasts.
The data reinforced the view that the economic recovery is strong enough for the U.S. central bank to start winding up its USD85 billion-a-month asset purchase program later this year.
The dollar shrugged off data showing that U.S. industrial production was flat in July, missing expectations for a 0.3% increase.
Other reports showed that manufacturing activity in the Philadelphia-region expanded at the slowest pace in four months in August, while manufacturing activity in the Empire state fell unexpectedly.
The euro was also lower against the pound and the yen, with EUR/GBP down 0.41% to 0.8513 and EUR/JPY losing 0.35% to trade at 129.64.
Sterling hit session highs against the euro and the dollar earlier Thursday after official data showed that U.K. retail sales rose much more strongly than expected in July, fuelling optimism over the economic recovery.
U.K. retail sales climbed 1.1% in July, beating expectations for a 0.6% gain and were 3% higher from a year earlier as sunnier summer weather boosted sales of food, alcohol, clothing and outdoor items.
EUR/USD hit 1.3205 during U.S. morning trade, the lowest since August 2; the pair subsequently consolidated at 1.3220, shedding 0.26%.
The pair was likely to find support at 1.3164, the low of July 25 and resistance at 1.3279, Wednesday’s high.
The greenback strengthened broadly after the Department of Labor said the number of people who filed for unemployment assistance in the U.S. fell to the lowest level since January 2008 last week, dropping by 15,000 to 320,000.
A separate report showed that U.S. consumer prices rose by a seasonally adjusted 0.2% in July, in line with forecasts. Core consumer prices, excluding food and energy costs, also rose 0.2%, matching forecasts.
The data reinforced the view that the economic recovery is strong enough for the U.S. central bank to start winding up its USD85 billion-a-month asset purchase program later this year.
The dollar shrugged off data showing that U.S. industrial production was flat in July, missing expectations for a 0.3% increase.
Other reports showed that manufacturing activity in the Philadelphia-region expanded at the slowest pace in four months in August, while manufacturing activity in the Empire state fell unexpectedly.
The euro was also lower against the pound and the yen, with EUR/GBP down 0.41% to 0.8513 and EUR/JPY losing 0.35% to trade at 129.64.
Sterling hit session highs against the euro and the dollar earlier Thursday after official data showed that U.K. retail sales rose much more strongly than expected in July, fuelling optimism over the economic recovery.
U.K. retail sales climbed 1.1% in July, beating expectations for a 0.6% gain and were 3% higher from a year earlier as sunnier summer weather boosted sales of food, alcohol, clothing and outdoor items.