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Forex - EUR/USD little changed, near 2-year lows in subdued trade

Published 12/19/2014, 09:47 AM
Euro holds steady against U.S. dollar in light trade
EUR/USD
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EUR/GBP
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Investing.com - The euro was little changed against the U.S. dollar in subdued trade on Friday, hovering close to more than two-year lows as demand for the greenback continued to receive broad support.

EUR/USD hit 1.2253 during European early afternoon trade, the pair's lowest since December 8; the pair subsequently consolidated at 1.2292.

The pair was likely to find support at 1.2245, the low of December 8 and resistance at 1.2353, Thursday's high.

Data earlier showed that the Gfk German consumer climate index rose to a six-month high of 9.0 in December from a reading of 8.7 the previous month. Analysts had expected the index to tick up to 8.9 this month.

But the dollar remained broadly supported after the U.S. Department of Labor said on Thursday that the number of individuals filing for initial jobless benefits in the week ending December 12 fell by 6,000 to 289,000 from the previous week’s revised total of 295,000.

The data came a day after the Federal Reserve said it would be "patient" before raising rates, guidance which it said is consistent with earlier assurances statement that rates would stay low "for a considerable time."

Fed Chair Janet Yellen said the central bank was unlikely to raise rates for the "next couple of meetings" indicating that a move in April at the earliest is possible.

The euro was higher against the pound, with EUR/GBP edging up 0.11% to 0.7849.

In the U.K., the Office for National Statistics reported on Friday that public sector net borrowing rose by £13.41 billion last month, compared to expectations for an increase of £15.37 billion.

October's figure was revised to a £6.43 billion gain from a previously estimated £7.06 billion rise.

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