Investing.com - The euro remained near two-and-a-half week lows against the U.S. dollar on Friday, as markets turned to the European Central Bank's policy meeting next week amid expectations for more stimulus, while upbeat U.S. data supported demand for the greenback.
EUR/USD hit 1.3484 during U.S. morning trade, the pair's lowest since October 16; the pair subsequently consolidated at 1.3500, declining 0.61%.
The pair was likely to find support at 1.3338, the low of September 18 and resistance at 1.3601. the high of October 9.
The single currency remained under pressure after data on Thursday showing that euro zone inflation fell to a four year low in October sparked concerns over the risk of further rate cuts by the European Central Bank.
In the U.S., the Institute of Supply Management rose to 56.4 in October, from a reading of 56.2 the previous month, confounding expectations for a decline to 55.0.
The report came a day after data showed that manufacturing activity in the Chicago region expanded at the fastest rate in 30 years in October, while a separate report showed that U.S. initial jobless claims fell in line with expectations last week.
The data fuelled speculation that the Fed may start tapering stimulus sooner than expected, after the central bank sounded more optimistic than anticipated in its assessment of the economy on Wednesday.
The euro was steady against the pound with EUR/GBP easing 0.02%, to hit 0.8468.
Also Friday, Markit research group said the U.K. manufacturing purchasing managers' index fell to 56.0 in October, from a downwardly revised reading of 56.3 the previous month. Analysts had expected the index to tick down to 56.1 last month.
EUR/USD hit 1.3484 during U.S. morning trade, the pair's lowest since October 16; the pair subsequently consolidated at 1.3500, declining 0.61%.
The pair was likely to find support at 1.3338, the low of September 18 and resistance at 1.3601. the high of October 9.
The single currency remained under pressure after data on Thursday showing that euro zone inflation fell to a four year low in October sparked concerns over the risk of further rate cuts by the European Central Bank.
In the U.S., the Institute of Supply Management rose to 56.4 in October, from a reading of 56.2 the previous month, confounding expectations for a decline to 55.0.
The report came a day after data showed that manufacturing activity in the Chicago region expanded at the fastest rate in 30 years in October, while a separate report showed that U.S. initial jobless claims fell in line with expectations last week.
The data fuelled speculation that the Fed may start tapering stimulus sooner than expected, after the central bank sounded more optimistic than anticipated in its assessment of the economy on Wednesday.
The euro was steady against the pound with EUR/GBP easing 0.02%, to hit 0.8468.
Also Friday, Markit research group said the U.K. manufacturing purchasing managers' index fell to 56.0 in October, from a downwardly revised reading of 56.3 the previous month. Analysts had expected the index to tick down to 56.1 last month.