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Forex - EUR/USD little changed in subdued trade

Published 05/17/2013, 08:20 AM
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, as markets awaited the release of U.S. data later in the day, while investors remained cautious amid fresh speculations over a possible rate cut by the European Central Bank.

EUR/USD hit 1.2851 during European afternoon trade, the session low; the pair subsequently consolidated at 1.2875, easing 0.05%.

The pair was likely to find support at 1.2747, the low of April 4 and resistance at 1.2942, the high of May 15.

The euro remained close to six-week lows against the greenback as recent disappointing data out of the euro zone fuelled speculation over an additional ECB rate cut to bolster growth.

Official data confirmed on Thursday that consumer price inflation in the euro zone fell 0.1% in April from the previous month, with the annual rate of inflation slowing to 1.2% from 1.7% in March.

A separate report showed that the euro zone posted a record trade surplus in March as imports fell 1% from February, while exports grew 2.8%.

On Wednesday, data showed that the euro zone economy contracted by 0.2% in the three months to March bringing the annualized rate of decline to 0.9%.

The euro was higher against the pound with EUR/GBP adding 0.14%, to hit 0.8447.

Later in the day, the U.S. was to release preliminary data from the University of Michigan on consumer sentiment and inflation expectations.


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