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Forex - Euro little changed vs. dollar after Draghi, U.S. data

Published 04/24/2014, 10:09 AM
Euro little changed against dollar after U.S. data, Draghi remarks
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EUR/JPY
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Investing.com - The euro was almost unchanged against the dollar on Thursday after European Central Bank President Mario Draghi raised the possibility of additional monetary easing and U.S. data indicated that the economic recovery is continuing.

EUR/USD was trading at 1.3818, after falling to lows of 1.3792 earlier in the session.

The pair was likely to find support at 1.3785, the low of April 22 and resistance at 1.3853.

The pair touched session lows after the Commerce Department reported that U.S. orders for long lasting manufactured goods rose 2.6% in March, ahead of expectations for a 2% gain.

Core durable goods orders, which exclude volatile transportation items, rose 2% last month, easily surpassing forecasts for a 0.6% gain.

Separately, the Labor Department said the number of people who filed for unemployment assistance in the U.S. in the week ending April 19 rose by 24,000 to 329,000. Analysts had expected an increase of 5,000.

Despite the increase, the underlying trend pointed to underlying strength in the labor market.

The euro backed off highs against the dollar earlier after ECB President Mario Draghi reiterated warnings that the strong euro could trigger further monetary easing.

Speaking at a conference in Amsterdam, Draghi said the euro exchange rate is an "increasingly important factor" in monetary policy. The exchange rate is not a policy target in itself, the ECB chief said, but the bank’s monetary policy stance could be affected by a continued appreciation in the currency.

He also said the ECB could launch a "broad-based" asset purchase program if the medium-term inflation outlook deteriorated.

The euro had strengthened ahead of the speech after German research institute Ifo reported that its business climate index rose to a two-month high of 111.2 this month from 110.7 in March, ahead of expectations for 110.5.

Elsewhere, the common currency fell to one-week lows against the yen, with EUR/JPY down 0.43% to 141.06.

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