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Forex - EUR/USD almost unchanged as focus remains on Ukraine

Published 04/25/2014, 08:20 AM
Euro little changed vs. dollar in cautious trade
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EUR/GBP
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Investing.com - The euro was almost unchanged against the U.S. dollar on Friday, as concerns over mounting tensions in Ukraine continued to weigh on risk-related assets, while investors awaited the release of U.S. consumer sentiment data later in the day.

EUR/USD hit 1.3848 during European afternoon trade, the pair's highest since Wednesday; the pair subsequently consolidated at 1.3833, inching up 0.01%.

The pair was likely to find support 1.3785, the low of April 22 and resistance at 1.3864, the high of April 17.

Market sentiment weakened amid renewed tensions in Eastern Europe, after Ukrainian troops killed several pro-Russian rebels on Thursday, and Russian troops started military exercises close to its border with Ukraine.

In response, U.S. Secretary of State John Kerry said Washington was drawing closer to imposing more sanctions on Moscow.

Sentiment on the single currency also remained vulnerable after European Central Bank President Mario Draghi on Thursday said the euro exchange rate is an "increasingly important factor" in monetary policy.

The exchange rate is not a policy target in itself, the ECB chief said, but the bank’s monetary policy stance could be affected by a continued appreciation in the currency.

He also said the ECB could launch a "broad-based" asset purchase program if the medium-term inflation outlook worsened.

The euro was steady against the pound, with EUR/GBP dipping 0.04% to 1.1019.

Also Friday, official data showed that U.K. retail sales rose 0.1% in March, beaing expectations for a 0.4% fall. Retail sales in February were revised down to a 1.3% increase from a previously estimated 1.7% gain.

A separate report showed that U.K. mortgage approvals rose by 45,900 last month, compared to expectations for an increase of 48,900. February's mortgage approvals were revised down to a 47,200 rise from a previously estimated 47,600 increase.

Later in the day, the U.S. was to release revised data on consumer sentiment.

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