Investing.com - The euro touched session lows against the dollar on Thursday after data showed that industrial production in the euro zone fell unexpectedly in October.
EUR/USD hit session lows of 1.3742 and was last down 0.08% to 1.3773.
The pair was likely to find support at 1.3739, Wednesday’s low and resistance at 1.3809, Wednesday’s high and a six week high.
Eurostat said industrial production in the euro area fell by 1.1% in October from a month earlier. Economists had forecast an increase of 0.3%.
Production in September was revised to a 0.2% decline, compared to a previously reported drop of 0.5%.
On a year-on-year basis, production was up by just 0.2%, below expectations for a 1.1% gain and after rising at a rate of 0.2% in the preceding month.
The report said the decline in production was driven by a 2.4% drop in production of durable consumer goods, and a 4% decline in energy production.
The euro’s losses were held in check as expectations for further monetary easing by the European Central Bank dimmed after the bank left monetary policy unchanged at its meeting this month, following a surprise rate cut in November.
Demand for the dollar continued to be underpinned by mounting expectations that the Federal Reserve could start to scale back stimulus measures at its upcoming policy meeting next week.
The dollar was boosted by expectations that an agreement on a two year U.S. budget deal would prompt the Fed to begin tapering its USD85 billion a month asset purchase program at its policy meeting scheduled for December 17 - 18.
Elsewhere, the euro trimmed gains against the yen and the Swiss franc.
EUR/JPY was up 0.25% to 141.55, off session highs of 141.93, but still close to Tuesday’s five year peaks of 142.15.
EUR/CHF was last up just 0.03% to 1.2223, after rising to session highs of 1.2245 earlier when the Swiss National Bank said it was maintaining the minimum exchange rate on the franc at 1.20 per euro and its benchmark interest rate unchanged at zero, after its final policy meeting of the year.
The Swiss franc is “still high” the SNB said.
EUR/USD hit session lows of 1.3742 and was last down 0.08% to 1.3773.
The pair was likely to find support at 1.3739, Wednesday’s low and resistance at 1.3809, Wednesday’s high and a six week high.
Eurostat said industrial production in the euro area fell by 1.1% in October from a month earlier. Economists had forecast an increase of 0.3%.
Production in September was revised to a 0.2% decline, compared to a previously reported drop of 0.5%.
On a year-on-year basis, production was up by just 0.2%, below expectations for a 1.1% gain and after rising at a rate of 0.2% in the preceding month.
The report said the decline in production was driven by a 2.4% drop in production of durable consumer goods, and a 4% decline in energy production.
The euro’s losses were held in check as expectations for further monetary easing by the European Central Bank dimmed after the bank left monetary policy unchanged at its meeting this month, following a surprise rate cut in November.
Demand for the dollar continued to be underpinned by mounting expectations that the Federal Reserve could start to scale back stimulus measures at its upcoming policy meeting next week.
The dollar was boosted by expectations that an agreement on a two year U.S. budget deal would prompt the Fed to begin tapering its USD85 billion a month asset purchase program at its policy meeting scheduled for December 17 - 18.
Elsewhere, the euro trimmed gains against the yen and the Swiss franc.
EUR/JPY was up 0.25% to 141.55, off session highs of 141.93, but still close to Tuesday’s five year peaks of 142.15.
EUR/CHF was last up just 0.03% to 1.2223, after rising to session highs of 1.2245 earlier when the Swiss National Bank said it was maintaining the minimum exchange rate on the franc at 1.20 per euro and its benchmark interest rate unchanged at zero, after its final policy meeting of the year.
The Swiss franc is “still high” the SNB said.