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Forex - EUR/USD slides in quiet trading, with Fed still in focus

Published 12/19/2014, 12:07 PM
Updated 12/19/2014, 12:09 PM
Euro hits two-year low against dollar on Fed language, U.S. jobless claims data
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Investing.com - The euro held to two-year lows against the dollar on Friday in a session void of major U.S. economic indicators, with the greenback enjoying lingering support from the Federal Reserve's reassuring take on the economy and upbeat U.S. data.

In U.S. trading, EUR/USD was down 0.49% at 1.2226, up from a session low of 1.2223 and off a high of 1.2302.

The pair was likely to find support at 1.2132, the low from Aug. 2, 2012, and resistance at 1.2571, Tuesday's high.

The dollar enjoyed support after the U.S. Department of Labor said on Thursday that the number of individuals filing for initial jobless benefits in the week ending Dec. 12 fell by 6,000 to 289,000 from the previous week’s revised total of 295,000. Economist had forecast an increase of 1,000.

The data came a day after the Fed said it would be "patient" before raising rates, guidance which it said is consistent with earlier assurances statement that rates would stay low "for a considerable time."

Fed Chair Janet Yellen said the central bank was unlikely to raise rates for the "next couple of meetings" indicating that a move in April at the earliest is possible.

Still, the dollar saw support on the notion that the days of rock-bottom interest rates are coming to an end.

Meanwhile in Europe, data released earlier revealed that the Gfk German consumer climate index rose to a six-month high of 9.0 in December from a reading of 8.7 the previous month. Analysts had expected the index to tick up to 8.9 this month.

Elsewhere, the euro was down against the pound, with EUR/GBP down 0.01% at 0.7839, and up against the yen, with EUR/JPY up 0.22% at 146.32.

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