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Forex - EUR/USD slips lower ahead of E.Z. data, Greece weighs

Published 02/20/2015, 02:22 AM
© Reuters.  Euro edges lower against dollar with data, Greece in focus
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Investing.com - The euro slipped lower against the U.S. dollar on Friday, as markets awaited the release of euro zone manufacturing and service sector data due later in the day and as concerns over last ditch negociations over Greece's debt weighed.

EUR/USD hit 1.1341 during late Asian trade, the pair's lowest since February 18; the pair subsequently consolidated at 1.1345, slipping 0.18%.

The pair was likely to find support at 1.1277, the low of February 11 and resistance at 1.1449, the high of February 17.

Investors remained cautious after Germany rejected a proposed bailout extension request from Greece on Thursday.

The Greek request included a pledge to maintain "fiscal balance" for a six-month period, in order to give it time to reach a new agreement on growth over the next four years with its partners in the euro zone, Reuters reported.

But German Finance Minister Wolfgang Schaeuble said it was "not a substantial proposal for a solution" and did not meet the criteria agreed on at the euro group meeting of euro zone finance ministers on Monday.

The European Commission had earlier welcomed the bailout extension request, saying it could pave the way for compromise and stability in the euro zone.

Another round of negotiations was planned at a meeting of eurozone finance ministers on Friday.

Meanwhile, sentiment on the dollar remained vulnerable after mixed U.S. data on Thursday sparked uncertainty over the strength of the country's economic recovery.

The Federal Reserve Bank of Philadelphia said that its manufacturing index deteriorated to a 12-month low of 5.2 this month from January’s reading of 6.3.

Separately, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending February 14 decreased by 21,000 to 283,000, compared to expectations for a 11,000 fall to 293,000.

The euro was also lower against the pound, with EUR/GBP shedding 0.26% to 0.7356.

Later in the day, the U.S. was to release preliminary data on manufacturing activity.

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