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Forex - EUR/USD remains higher after downbeat U.S. data

Published 04/23/2015, 10:08 AM
© Reuters.  Euro holds gains vs. greenback as U.S. data disappoints
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Investing.com - The euro remained higher against the U.S. dollar on Thursday, after downbeat U.S. jobless claims and new home sales data dented demand for the greenback.

EUR/USD hit 1.0782 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.0759, rising 0.34%.

The pair was likely to find support 1.0622, the low of April 16 and resistance at 1.0888, the high of April 8.

The dollar came under pressure after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending April 18 increased by 1,000 to 295,000 from the previous week’s total of 294,000.

Analysts had expected initial jobless claims to fall by 4,000 to 290,000 last week.

Data also showed that U.S. new home sales dropped 11.4% last month to 481,000 units after a revised 5.6% increase to 541,000 in February. Analysts had expected new home sales to fall 5.3% to 513,000 units in March.

The report came a day after the U.S. National Association of Realtors said that existing home sales rose 6.1% last month to 5.19 million units, compared to expectations for a 3.0% rise.

The single currency showed little reaction to a report by market research group Markit on Thursday saying that the euro zone's composite purchasing managers' index, which includes manufacturing and services activity, fell to 53.5 this month from 54.0 in March, compared to expectations for a rise to 54.4.

Germany's manufacturing PMI ticked down to 54.2 this month from a reading of 55.4 in March, while the services PMI slipped to 54.4 in April from 55.4 the previous month.

Markit also said that France's manufacturing PMI fell to 48.4 this month from 48.8 in March, while the services PMI slipped to 50.8 in April from a reading of 52.4 the previous month.

Earlier Thursday, another report showed that Spain's unemployment rate rose to 23.8% in the first quarter from 23.7% in the three months to December. Analysts had expected the unemployment rate to slip to 23.6% in the last quarter.

The euro was higher against the pound, with EUR/GBP gaining 0.50% to 0.7170.

In the U.K., data earlier showed that U.K. retail sales fell 0.5% last month, compared to expectations for a 0.4% rise. Year-on-year, U.K. retail sales rose 4.2% in March, disappointing expectations for a 5.4% gain.

Core retail sales, which exclude automobiles and fuel, ticked up 0.2% last month, less than the expected 0.4% increase.

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