Investing.com - The euro edged lower against the U.S. dollar in
subdued trade on Friday, as investors locked in profits after the
single currency rallied to eight-month highs against the greenback
due to the current U.S. government shutdown.
EUR/USD hit 1.3583 during European afternoon trade, the session
low; the pair subsequently consolidated at 1.3593, slipping 0.18%.
The pair was likely to find support at 1.3506, the low of October 2
and resistance at 1.3658, the high of February 4.
The dollar remained under broad selling pressure as investors
continued to weigh the implications of a protracted U.S. government
On Thursday, disappointing U.S. service sector data added to
concerns that the shutdown in Washington could have wider
consequences on the U.S. economy.
The Institute of Supply Management said its non-manufacturing
purchasing manager's index fell to a three-month low of 54.4 in
September from a reading of 58.6 in August. Analysts had expected
the index to decline to 57.4 last month.
The U.S. Labor Department on Thursday said the employment report
for September will not be released as scheduled on Friday due to
the government shutdown. It said a new release date had not been
Markets were also considering how the U.S. political deadlock will
impact negotiations to raise the U.S. debt ceiling, which the U.S.
Treasury Department has estimated will be reached by October 17.
Speaking overnight, International Monetary Fund head Christine
Lagarde said the failure to raise the U.S. debt ceiling could hurt
the global economy and warned U.S. growth could drop below 2% this
In the euro zone, official data earlier showed that German producer
price inflation fell 0.1% in August, confounding expectations for a
0.1% rise, after a 0.1% slip the previous month.
The euro was higher against the pound with EUR/GBP gaining 0.49%,
to hit 0.8470.
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