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Forex - EUR/USD drops on soft French output data

Published 08/09/2013, 11:52 AM
Updated 08/09/2013, 11:53 AM
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Investing.com - The euro softened against the dollar on Friday after French industrial output figures disappointed investors and renewed concerns that the euro zone economy faces pot holes on its road to recovery.

In U.S. trading on Friday, EUR/USD was down 0.28% at 1.3342, up from a session low of 1.3333 and off from a high of 1.3391.

The pair was likely to find support at 1.3233, Monday's low, and resistance at 1.3399, Thursday's high.

France reported earlier that the country's industrial production dropped 1.4% in June, disappointing expectations for a 0.1% rise. May's figure was revised to a 0.3% contraction from a previously estimated 0.4% decline.

The numbers weakened the euro, while the dollar saw some support on market sentiments that Federal Reserve monetary stimulus that weaken the greenback to spur recovery will begin to taper in either September or December.

Cleveland Fed President Sandra Pianalto said Wednesday there has been “meaningful improvement” in the labor market and that tapering may be warranted if it continues to strengthen.

Chicago Fed President Charles Evans and Dallas Fed President Richard Fisher have made similar comments.

Fed officials have said they will pay close attention to data before deciding on when to taper and eventually end stimulus programs

The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP trading down 0.11% at 0.8602 and EUR/JPY trading down 0.73% at 128.48.









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