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Forex - EUR/USD falls on weak U.S. retail and sentiment data

Published 04/12/2013, 02:52 PM
Updated 04/12/2013, 02:53 PM
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Investing.com - The euro softened against the dollar on Friday after soft U.S. consumer sentiment and retail-sales data sent investors selling stocks and higher-yielding currencies for safe-haven dollar positions.

News of a final bailout approval for Cyprus capped the greenback's gains against the euro.

In U.S. trading on Friday, EUR/USD was down 0.10% at 1.3089, up from a session low of 1.3037 and off from a high of 1.3127.

The pair was likely to find support at 1.2969, Monday's low, and resistance at 1.3138, Thursday's high.

In the U.S. earlier, the Thomson Reuters/University of Michigan's preliminary consumer sentiment index dropped to a 9-month low in April, falling to 72.3 from 78.6 in the previous month.

Analysts were expecting the index to tick down to 78.5 this month.
Elsewhere, official data revealed that retail sales in the U.S. fell 0.4% in
March, defying expectations for a 0.1% rise after a 1% increase the previous month.

Core retail sales, which are stripped of volatile automobile sales, also dipped 0.4% last month after a 1% increase in February, missing similar expectations for a 0.1% rise.

The Labor Department, meanwhile, reported that the U.S. producer price index fell 0.6% in March, more than an expected 0.2% decline and way off a 0.7% gain the previous month.

The country's core producer price index rose 0.2% last month, in line with expectations, following a 0.2% increase in February.

The news sparked safe-haven demand for the dollar, though the euro saw some support after eurozone finance ministers agreed to support a EUR10 billion bailout for Cyprus, though reports that Nicosia may ask its neighbors for more help financing the EUR23 billion final tab for bailing out the island nation kept the euro lower

The euro, meanwhile, was up against the pound and down against the yen, with EUR/GBP trading up 0.10% at 0.8524, and EUR/JPY trading down 0.86% at 129.45.





 

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