Investing.com – The euro pared gains against the U.S. dollar on Thursday, retreating from an 8-month high, after the release of better-than-expected U.S. data on initial jobless claims.
EUR/USD retreated from 1.4028, the pair’s highest since January 28, to hit 1.3925 during European late afternoon trade, gaining 0.05%.
The pair was likely to find support at 1.3798, Wednesday’s low and short-term resistance at 1.4178, the high of January 26.
Earlier Thursday, the U.S. Department of Labor said that U.S. initial jobless claims declined to a seasonally adjusted 445K last week after falling to revised 456K in the preceding week. Analysts had expected jobless claims to decline to 455K last week.
The data eased concerns that the Federal Reserve may go ahead with a second round of what is known as quantitative easing, or asset purchases meant to drive long-term interest rates lower.
Meanwhile, the euro was down against the pound, with EUR/GBP shedding 0.27% to hit 0.8744.
Also Thursday, the European Central Bank left its interest rate unchanged at a record low of 1.0% for the seventeenth consecutive month in October. Following the announcement ECB president Jean Claude Trichet said that said he supports a “strong dollar” and opposes “disorderly” shifts in global exchange rates.
EUR/USD retreated from 1.4028, the pair’s highest since January 28, to hit 1.3925 during European late afternoon trade, gaining 0.05%.
The pair was likely to find support at 1.3798, Wednesday’s low and short-term resistance at 1.4178, the high of January 26.
Earlier Thursday, the U.S. Department of Labor said that U.S. initial jobless claims declined to a seasonally adjusted 445K last week after falling to revised 456K in the preceding week. Analysts had expected jobless claims to decline to 455K last week.
The data eased concerns that the Federal Reserve may go ahead with a second round of what is known as quantitative easing, or asset purchases meant to drive long-term interest rates lower.
Meanwhile, the euro was down against the pound, with EUR/GBP shedding 0.27% to hit 0.8744.
Also Thursday, the European Central Bank left its interest rate unchanged at a record low of 1.0% for the seventeenth consecutive month in October. Following the announcement ECB president Jean Claude Trichet said that said he supports a “strong dollar” and opposes “disorderly” shifts in global exchange rates.