Investing.com - The euro bolstered against the U.S. dollar on
Thursday after U.S. weekly jobless claims came in less than
expected while U.S. housing starts beat market forecasts.
Investors ditched the safe-haven greenback and took on risk amid
hopes the world's largest economy may be picking up its pace of
recovery in wake of good news coming out of the once battered
housing and labor markets.
In U.S. trading on Thursday, EUR/USD was trading down 0.49% at
1.3355, up from a session low of 1.3270, and off from a high of
The pair was likely to find support at 1.3258, Wednesday's low, and
resistance at 1.3394, Tuesday's high.
In the U.S. earlier, U.S. Department of Labor reported that the
number of individuals filing for weekly jobless benefits last week
fell by 37,000 to a seasonally adjusted five-year low of 335,000,
much more than market calls for a decline of 7,000 to 365,000.
The news sparked demand for risk early in the session on Thursday,
which sent investors selling safe-haven dollar positions.
Meanwhile, the Commerce Department said U.S. housing starts jumped
by 12.1% in December to an annual unit rate of 954,000, the highest
level since 2008, beating out expectations for a 4.6% increase to
A separate report showed that the Philly Fed's manufacturing index
fell to -5.8 in January from 4.6 the previous month, missing
expectations for a 5.8 reading.
Ebbing borrowing costs in Spanish government bond auctions pushed
the pair up as well.
Spain's Treasury sold EUR4.5 billion worth of debt, in line with
the full targeted amount amid heavy turnout.
Elsewhere, the European Central Bank said in its monthly report
released earlier that economic weakness in the eurozone will
persist throughout the rest of 2013 though the economy should begin
to recover gradually later in the year.
The euro, meanwhile, was up against the pound and up against the
yen, with EUR/GBP trading up 0.66% at 0.8356, and EUR/JPY trading
up 1.75% at 119.50.
The yen has come under pressure in recent weeks on expectations for
more aggressive easing steps by the Bank of Japan, which will hold
a monetary policy meeting next week.
On Friday, the U.S. will release preliminary data from the
University of Michigan on consumer sentiment, a leading indicator
of consumer spending.
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