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Forex - EUR/USD hits session lows after U.S. jobless claims

Published 05/09/2013, 09:58 AM
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Investing.com - The euro fell to session lows against the dollar on Thursday after official data showed that U.S. initial jobless claims fell to the lowest level since January 2008 last week.

EUR/USD hit 1.3096 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.3100, shedding 0.39%.

The pair was likely to find support at 1.3052, the low of May 6 and resistance at 1.3176, the session high.

The Department of Labor said the number of individuals filing for unemployment assistance in the U.S. last week fell by 4,000 to a seasonally adjusted 323,000, compared to expectations for an increase of 8,000 to 335,000.

Jobless claims for the preceding week were revised up to 327,000 from a previously reported increase of 324,000.

The data, coming after last week’s stronger than expected U.S. nonfarm payrolls report, eased concerns over a slowdown in the labor market.

The euro was higher against the dollar earlier in the session as recent strong German economic data tempered expectations for a rate cut by the European Central Bank.

German industrial output jumped 1.2% in March data on Wednesday showed, confounding expectations for a 0.1% decline.

The report came a day after data showed that German factory orders also beat expectations in March, rising 2.2%, the fastest rate of growth since October 2012.

The data fuelled optimism over the outlook for first quarter growth in the euro zone’s largest economy after Germany’s gross domestic product contracted by 0.5% in the three months to December.

The euro slid lower against the pound and the yen, with EUR/GBP down 0.17% to 0.8451 and EUR/JPY dipping 0.06% to 130.15.

Sterling hit session highs against the euro on Thursday after official data showed that U.K. industrial and manufacturing output beat expectations in March, fuelling optimism over the outlook for the economic recovery.

Also Thursday, the Bank of England left interest rates unchanged at a record low 0.5% and maintained the size of its asset purchase program at GBP375 billion.



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