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Forex - Euro pushes higher in thin trade

Published 11/11/2013, 06:47 AM
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Investing.com - The euro pushed higher against the yen, the pound and the dollar in thin trade on Monday, with public holidays in the U.S. and France keeping trade volumes low.

EUR/JPY was up 0.32% to 132.82 from Friday’s close of 132.40, holding above the three week low of 131.20 struck on Thursday.

The pair was likely to find support at 131.29, Friday’s low and resistance at 133.51, Thursday’s high.

The single currency remained under pressure after the European Central Bank unexpectedly cut its benchmark interest rate from 0.5% to 0.25% late last week and indicated that further rate cuts are still possible.

The euro gained ground against sterling, with EUR/GBP rising 0.36% to 0.8375, up from Friday’s close of 0.8343, after falling to a 10-month low of 0.8299 on Thursday.

Elsewhere, the euro moved higher against the dollar, with EUR/USD climbing 0.23% to 1.3391 from Friday’s close of 1.3364, recovering from Thursday’s seven week low of 1.3294.

Demand for the dollar continued to be underpinned after Friday’s strong U.S. jobs report raised the possibility that the Federal Reserve could start to taper stimulus before the end of the year.

The U.S. economy added 204,000 jobs in October, the Department of Labor said Friday, significantly higher than the 125,000 expected by economists.

The report came on the heels of data showing that the U.S. economy expanded by a larger-than-forecast 2.8% in the third quarter.

The upbeat data indicated that the U.S. economy shrugged off the impact of the government shutdown and added to expectations that the Fed may start winding down its USD85 billion-a-month asset purchase program as soon as next month.




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