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Forex - Euro rises vs. dollar after downbeat U.S. data

Published 04/15/2016, 10:13 AM
© Reuters.  Euro gains ground vs. dollar as U.S. data disappoints
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Investing.com - The euro rose against the U.S. dollar on Friday, after a the release of downbeat U.S. economic reports sparked fresh concerns over the strength of the economy, dampening demand for the greenback.

EUR/USD hit 1.1296 during U.S. morning trade, the pair’s highest since Wednesday; the pair subsequently consolidated at 1.1310, gaining 0.41%.

The pair was likely to find support at 1.1233, Thursday’s low and a two-and-a-half week low and resistance at 1.1390, Wednesday’s high.

In a preliminary report, the University of Michigan said its consumer sentiment index fell to a seven-month low of 89.7 in April from 91.0 the previous month. Analysts had expecte the index to rise to 92.0 this month.

The report came after official data showed that U.S. industrial production decreased by 0.6% last month, worse than expectations for a decline of 0.1%. Manufacturing production declined by 0.3% last month, worse than forecasts for a 0.1% increase.

Separately, the Federal Reserve Bank of New York said that its general business conditions index improved to 9.65 this month from a reading of 0.62 in March. Analysts had expected the index to rise to 2.21 in April.

The euro also higher against the pound, with EUR/GBP up 0.21% at 0.7975.

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