Investing.com – The euro trimmed losses against the U.S. dollar on Thursday, pulling away from an eight-month low after falling sharply earlier amid concerns over the outlook for global economic growth.
EUR/USD pulled back from 1.3386, the pair’s lowest since January 19, to hit 1.3455 during U.S. morning trade, still down 0.86%.
The pair was likely to find support at 1.3386, the days low and resistance at 1.3600, the days high.
Risk appetite crumbled after the Federal Reserve warned of “significant downside risks” facing the U.S. economy after its policy meeting on Wednesday and announced fresh measures to boost growth.
The central bank unveiled a plan to trade short-term bonds for long-term ones, in an attempt to boost the economy by pushing down long-term interest rates, a move dubbed “Operation Twist.”
The euro extended losses after data showing that German manufacturing output fell to a 24-month low in September, while manufacturing activity in the 17-nation single currency bloc slumped to the lowest since August 2009.
A separate report showed that euro zone factory orders fell more-than-expected in July.
Elsewhere, the European Union's Economic and Monetary Affairs Commissioner Olli Rehn said earlier that European leaders will not allow an uncontrolled default of Greek debt and will not let the country leave the euro zone.
On Wednesday, Greece’s government announced that it had adopted further austerity measures to ensure it can reach deficit-reduction targets in order to access its next tranche of financial aid, due next month.
Meanwhile, the euro remained close to a 10-year low against the yen, with EUR/JPY tumbling 1.29% to hit 102.42.
Also Thursday, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 9,000 to 423,000, falling short of expectations for a decline to 420,000.
EUR/USD pulled back from 1.3386, the pair’s lowest since January 19, to hit 1.3455 during U.S. morning trade, still down 0.86%.
The pair was likely to find support at 1.3386, the days low and resistance at 1.3600, the days high.
Risk appetite crumbled after the Federal Reserve warned of “significant downside risks” facing the U.S. economy after its policy meeting on Wednesday and announced fresh measures to boost growth.
The central bank unveiled a plan to trade short-term bonds for long-term ones, in an attempt to boost the economy by pushing down long-term interest rates, a move dubbed “Operation Twist.”
The euro extended losses after data showing that German manufacturing output fell to a 24-month low in September, while manufacturing activity in the 17-nation single currency bloc slumped to the lowest since August 2009.
A separate report showed that euro zone factory orders fell more-than-expected in July.
Elsewhere, the European Union's Economic and Monetary Affairs Commissioner Olli Rehn said earlier that European leaders will not allow an uncontrolled default of Greek debt and will not let the country leave the euro zone.
On Wednesday, Greece’s government announced that it had adopted further austerity measures to ensure it can reach deficit-reduction targets in order to access its next tranche of financial aid, due next month.
Meanwhile, the euro remained close to a 10-year low against the yen, with EUR/JPY tumbling 1.29% to hit 102.42.
Also Thursday, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 9,000 to 423,000, falling short of expectations for a decline to 420,000.