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Forex - EUR/USD little changed after U.S. consumer sentiment data

Posted
10/25/2013 10:08:00 AM
By: Investing.com
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Investing.com - " The euro was little changed against the U.S. dollar on Friday, still hovering near two-year highs after the release of downbeat U.S. consumer sentiment data as investors remained focused on the Federal Reserve's upcoming policy decision.

EUR/USD hit 1.3775 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.3796, inching down 0.03%.

The pair was likely to find support at 1.3792, the low of October 22 and resistance at 1.4246, the high of October 1, 2011.

In a revised report, the Universtiy of Michigan said its consumer sentiment index fell to 73.2 this month, from a reading of 75.2 in September, compared to expectations for a downtick to 75.0.

The University of Michigan also said inflation expectations ticked up to 3.0% in October, from 2.9% the previous month.

The data came after the Census Bureau said that U.S. core durable goods orders, which exclude transportation items, fell 0.1% in September, confounding expectations for a 0.5% rise, after a 0.1% decline the previous month.

U.S. durable goods orders rose 3.7% last month, exceeding expectations for a 2% increase, after a 0.1% rise in August.

The dollar remained under broad selling pressure after disappointing U.S. employment reports this week added to expectations that the Fed will delay tapering its stimulus program until next year amid concerns over the impact of the 16-day U.S. government shutdown on the economic recovery.

On Thursday, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits declined by a lower than expected 12,000 last week to 350,000, while a separate report earlier in the week showed that U.S. jobs growth slowed in September.

In the euro zone, the Ifo Institute for Economic Research said Germany's business climate index fell to 107.4 in October, from a reading of 107.7 the previous month, confounding expectations for a rise to 108.0.

The euro was fractionally higher against the pound with EUR/GBP up 0.08%, to hit 0.8525.

Also Friday, preliminary data showed that the U.K. gross domestic product rose 0.8% in the third quarter, in line with expectations and up from 0.7% in the previous quarter.


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