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Forex - Euro steady as dollar remains under pressure

Published 04/16/2015, 02:33 AM
© Reuters.  Euro steady near 1-week highs against dollar
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Investing.com - The euro was steady near one-week highs against the dollar on Thursday, as the greenback remained under pressure after weak U.S. industrial output data added to signs that the economic recovery is slowing.

EUR/USD was at 1.0685, after rising to one-week highs of 1.0747 overnight.

Official figures on Wednesday showed that U.S. industrial production fell 0.6% in March, the largest fall since August 2012 and worse than economists' expectations for a 0.3% decline.

The reports, coming on the heels of disappointing retail sales data, added to speculation that the Federal Reserve could delay hiking interest rates until late 2015, instead of tightening midyear.

The euro’s gains were held in check after the European Central Bank said Wednesday it expects to fully implement its trillion euro quantitative easing program.

ECB President Mario Draghi played down speculation that recent signs of a recovery in the euro zone economy could see the bank scale back its buying program. Draghi also played down concerns that the asset purchase program will struggle to find enough euro zone bonds to buy.

The euro was little changed against the yen, with EUR/JPY at 127.26. USD/JPY was at 119.31, holding above Wednesday’s lows of 118.78.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, edged up to 98.69, pulling back from overnight lows of 98.07.

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