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Forex - EUR/USD trims losses after mixed U.S. data

Published 02/12/2016, 10:03 AM
© Reuters.  Euro eases off session lows vs. dollar but remains under pressure
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Investing.com - The euro trimmed losses against the U.S. dollar on Friday, after the release of mixed U.S. economic reports, although tepid data from the euro zone continued to weigh on the single currency.

EUR/USD pulled away from 1.1225, the pair’s lowest since Wednesday, to hit 1.1261 during U.S. morning trade, still down 0.53%.

The pair was likely to find support at 1.1160, Wednesday’s low and resistance at 1.1377, Thursday’s high and a three-and-a-half month peak.

In a preliminary report, the University of Michigan said its consumer sentiment index slipped to 90.7 in February from 92.0 the previous month. Analysts had expected the index to remain unchanged this month.

In addition, the U.S. Census Bureau said that retail sales rose 0.2% in January, exceeding expectations for a 0.1% uptick. Retail sales rose 0.2% increase in December, whose figure was revised from a previously estimated 0.1% fall.

Core retail sales, which exclude automobiles, increased by 0.1% last month, in line with expectations and after an uptick of 0.1% in December.

In the euro zone, preliminary data earlier showed that gross domestic product grew 0.3% in the fourth quarter, in line with expectations and unchanged from the previous quarter. Year-on-year, the bloc’s GDP rose 1.5% in the last quarter, as expected.

The report came shortly after data showed that German GDP grew 0.3% in the fourth quarter, in line with expectations and unchanged from the previous quarter. Year-on-year, German GDP rose 2.1% in the last quarter, below expectations for a 2.3% growth rate.

A separate report showed that the euro zone’s industrial production declined by 1.0% in December, compared to expectations for a 0.3% gain.

The euro was also lower against the pound, with EUR/GBP declining 0.47% to 0.7789.

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