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Forex - EUR/USD lower after euro zone factory data

Published 09/12/2013, 07:51 AM
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Investing.com - The euro was lower against the dollar on Thursday after data showed that industrial output in the euro zone fell sharply in July, hitting the lowest level in nearly three years.

EUR/USD hit 1.3284 during European afternoon trade, the session low; the pair subsequently consolidated at 1.3290, shedding 0.15%.

The pair was likely to find support at 1.3243, Wednesdays low and resistance at 1.3323, the session high and an almost two-week high.

Eurostat said industrial production in the euro area fell 1.5% in July, worse than expectations for a 0.1% decline, and the biggest drop in 12 months.

On a year-over-year basis industrial production fell 2.1%, to the lowest level since April 2010, compared to forecasts for a 0.1% decline.

The weak data sparked concerns over the outlook for third quarter growth. Last week, European Central Bank President Mario Draghi reiterated that bank rates will stay at current or lower levels for an extended period to help shore up the recovery.

Elsewhere, the euro was steady against the pound, with EUR/GBP dipping 0.01% to 0.8413.

Sterling found support after Bank of England Governor Mark Carney said the U.K. economy is picking up as a result of the bank’s stimulus program. The comments came during testimony to parliament’s Treasury Select Committee. 

The euro was weaker against the yen, with EUR/JPY down 0.59% to 132.18.

Investors were awaiting a speech by Mario Draghi later Thursday, and the U.S. was to release data on jobless claims.



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