Forex - EUR/USD moderately higher before E.Z. data, Fed

Published 08/31/2012, 04:47 AM
EUR/USD
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EUR/GBP
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Investing.com - The euro was trading moderately higher against the U.S. dollar on Friday, as investors eyed the release of euro zone economic data and ahead of a highly anticipated speech by Federal Reserve Chairman Ben Bernanke later in the day.

EUR/USD hit 1.2525 during European morning trade, the daily high; the pair subsequently consolidated at 1.2518, adding 0.10%.

The pair was likely to find support at 1.2432, the low of August 22 and resistance at 1.2590, the high of August 23.

Sentiment remained mildly supported amid expectations that the European Central Bank is working on measures to help stabilize the euro zone's sovereign debt markets, ahead of its next policy meeting on September 6.

But euro zone debt concerns re-emerged, after European Central Bank Governing Council member Ewald Nowotny said that economic uncertainty in Europe is rising "massively" as growth prospects worsen.

Official data earlier showing that retail sales in Germany fell unexpectedly by 0.9% in July added to concerns over the effects of the euro zone's debt crisis on the region's strongest economy.

Meanwhile, investors remained cautious ahead of Bernanke’s speech at a symposium in Jackson Hole, Wyoming, amid ongoing speculation over how close the Fed may be to implementing more economic stimulus.

The euro was steady against the pound with EUR/GBP easing up 0.06%, to hit 0.7926.

Later in the day, the euro zone was to publish preliminary data on consumer price inflation, as well as official data on the bloc's unemployment rate.

Manwhile, the U.S. was to release a report on Chicago’s purchasing managers’ index, as well as revised data by the University of Michigan on consumer sentiment and official data on factory orders.


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