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Forex - EUR/USD rises after euro zone industrial production data

Published 12/12/2014, 07:05 AM
Euro gains ground vs. dollar on positive E.Z. data
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Investing.com - The euro rose against the U.S. dollar on Friday, after data showed that industrial production rose in line with market expectations in October, although Thursday's strong U.S. data continued to support demand for the greenback.

EUR/USD hit 1.2495 during European early afternoon trade, the session high; the pair subsequently consolidated at 1.2454, gaining 0.38%.

The pair was likely to find support at 1.2360, the low of December 10 and resistance at 1.2507, the high of December 1.

Data earlier showed that industrial production in the euro zone rose 0.1% in October, in line with expectations, after a 0.5% increase in September, whose figure was revised from a previously estimated 0.6% gain.

Year-on-year, the bloc's industrial production increased 0.7% in October, compared to expectations for a 0.5% rise, after a revised 0.2% uptick in September.

Meanwhile, the dollar remained supported after the U.S. Department of Labor said on Thursday that the number of individuals filing for initial jobless benefits in the week ending December 6 decreased by 3,000 to 294,000 from the previous week’s total of 297,000.

Separately, the U.S. Commerce Department said that retail sales increased by 0.7% last month, beating expectations for a gain of 0.4%. Retail sales growth for October was revised up to a 0.5% increase from a previously reported gain of 0.3%.

Core retail sales, which exclude automobile sales, advanced by 0.5% in November, easily surpassing forecasts for a 0.1% increase. Core sales in October rose by 0.4%.

The strong retail sales numbers boosted expectations for the Federal Reserve to hike interest rates earlier in 2015 than once anticipated, possibly in the middle of the year.

The euro was also higher against the pound, with EUR/GBP advancing 0.46% to 0.7923.

In the U.K., the Office for National Statistics reported on Friday that construction output declined 2.2% in October, disappointing expectations for a 0.8% rise. Construction output rose 2.2% in September, whose figure was revised from a previously estimated 1.8% gain.

Later in the day, the U.S. was to release data on producer prices and a preliminary report on consumer sentiment.

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