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Forex - EUR/USD hovers near 3-month lows, E.Z. data still weighs

Published 05/23/2014, 02:18 AM
Euro trades near 3-month lows against dollar
EUR/USD
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EUR/GBP
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Investing.com - The euro edged down against the U.S. dollar on Friday, hovering near three-month lows as Thursday's euro zone data continued to weigh on demand for the single currency, while positive reports from the U.S. lent support to the greenback.

EUR/USD hit 1.3641 during late Asian trade, the pair's lowest since Wednesday; the pair subsequently consolidated at 1.3647, edging down 0.07%.

The pair was likely to find support at 1.3585, the low of February 13 and resistance at 1.3723, the high of May 21.

The single currency remained under pressure after data on Thursday showed that manufacturing activity in the euro zone expanded at the slowest rate in six months in May, although the region’s service sector expanded at the fastest rate in almost three years.


Separately, Germany’s private sector continued to grow strongly this month but the French private sector fell back into contraction territory.

Meanwhile, the dollar found support after the National Association of Realtors on Thursday said existing home sales increased 1.3% in April to an annual rate of 4.65 million units, indicating that the housing market is regaining momentum.

A separate report showed that U.S. manufacturing activity expanded at a faster rate than expected this month.

The euro was fractionally lower against the pound, with EUR/GBP slipping 0.09% to 0.8088.

Later in the day, the U.S. was to release data on new homes sales.

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