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Forex - EUR/USD slides lower as Greece concerns weigh

Published 03/27/2015, 07:42 AM
© Reuters.  Euro moves lower against stronger dollar with eyes on Greece
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Investing.com - The euro was lower against the U.S. dollar on Friday, as concerns over Greece's debt troubles continued to weigh and as demand for the greenback remained supported by the previous session's upbeat U.S. jobless claims data.

EUR/USD hit 1.0801 during European early afternoon trade, the pair's lowest since March 23; the pair subsequently consolidated at 1.0853, shedding 0.29%.

The pair was likely to find support at 1.0765, the low of March 23 and resistance at 1.1052, Thursday's high.

Sentiment on the euro remained fragile after Greece failed in a bid on Wednesday to secure a quick cash payment from the euro zone rescue fund to help stave off potential bankruptcy next month.

Athens had appealed for the European Financial Stability Facility to return €1.2 billion it said it had overpaid when it transferred bonds intended for bank recapitalization this month.

The Greek government is expected to present a detailed list of proposed reforms to its eurozone partners by next Monday.

Meanwhile, the dollar was still supported after data on Thursday showing that the number of people filing unemployment assistance in the U.S. last week fell to a five-week low sparked optimism over the strength of the job market.

The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending March 21 declined by 9,000 to 282,000 from the previous week’s total of 291,000.

Another report showed that the U.S. service sector expanded at the fastest rate this month since September.

The euro was also lower against the pound, with EUR/GBP declining 0.61% to 0.7285.

Later in the day, the U.S. was to release final data on fourth quarter economic growth and the revised reading of the University of Michigan consumer sentiment index.

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