Investing.com - The euro pushed lower against the U.S. dollar in light trade on Friday, as market sentiment weakened after Thurday's disappointing U.S. economic reports prompted investors to turn to safer assets.
EUR/USD hit 1.3663 during European afternoon trade, the session low; the pair subsequently consolidated at 1.3684, slipping 0.09%.
The pair was likely to find support at 1.3574, the low of January 10 and resistance at 1.3775, the high of January 2.
Market sentiment remained under pressure after data on Thursday showed that U.S. initial jobless claims rose in line with expectations last week, but the number of continuing jobless claims remained above the three million mark for the second successive week.
The number of people who filed for unemployment assistance in the U.S. last week rose to 326,000, the Labor Department said, up from the previous week’s revised total of 325,000.
However, the number of people filing continuing unemployment claims rose to 3.056 million up from 3.022 million in the week to January 11. Analysts had expected continuing claims to fall to 2.930 million.
A separate report showed that U.S. factory output fell to a three-month low in January, due to disruption from unseasonable cold weather.
But the single currency remained mildly supported after a larger than expected increase in euro zone private sector activity this month indicated that the recovery in the euro area is strengthening.
On Thursday, Markit said the euro zone’s composite output index rose to a 31-month high of 53.2 in January, up from a final reading of 52.1 in December, as growth picked up in Germany and the rate of decline eased in France.
The euro was higher against the pound, with EUR/GBP climbing 0.66% to 0.8286.
Also Friday, the British Bankers' Association said U.K. mortgage approvals rose by GBP46,500 in December, less than the expected 47,200 increase, after an upwardly revised 45,400 rise the previous months.