Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Forex - EUR/USD remains lower after strong U.S. data

Published 10/16/2014, 10:03 AM
Euro still lower vs. broadly stronger dollar
EUR/USD
-
EUR/GBP
-

Investing.com - The euro remained lower against the U.S. dollar on Thursday, as strong U.S. economic reports lent support to the greenback and as growing worries over the Ebola virus dampened market sentiment.

EUR/USD hit 1.2706 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.2744, retreating 0.71%.

The pair was likely to find support at 1.2623, Wednesday's low and resistance at 1.2886, Wednesday's high and a three-week high.

The U.S. Department of Labor reported that the number of individuals filing for initial jobless benefits in the week ending October 11 decreased by 23,000 to 264,000 from the previous week’s total of 287,000.

Analysts had expected jobless claims to rise by 3,000 to 290,000 last week.

A separate report showed that U.S. industrial production climbed 1.0% last month, beating expectations for a 0.4% rise. August's figure was revised to a 0.2% slip from a previously estimated 0.1% downtick.

In addition, the Federal Reserve of Philadelphia said its manufacturing index fell to 20.7 this month from a reading of 22.5 in September. Analysts had expected the index to decline to 20.0 in October.

Demand for the safe-haven U.S. dollar also found support after U.S. President Barack Obama said on Wednesday that the country's Center for Disease Control and Prevention (CDC) would send rapid response teams to any new suspected Ebola cases in the U.S.

Mr. Obama's comments came after the infection of a second Texas health care worker.

In the euro zone, revised data earlier showed that euro zone consumer price inflation remained at 0.3% in September, in line with expectations.

Core CPI, which excludes food, energy, alcohol, and tobacco, ticked up to 0.8% last month from an initial estimate of 0.7%.

But the single currency remained fragile after data on Tuesday showed that the euro zone's industrial production declined more than expected in August, while a separate report showed that German economic sentiment deteriorated to the lowest level since December 2012 in October.

The euro was also lower against the pound, with EUR/GBP declining 0.65% to 0.7964.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.