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Forex - Euro falls to session lows against dollar and yen

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Investing.com -

Investing.com - The euro fell to session lows against the broadly stronger dollar on Wednesday and also hit session lows against the yen and the pound, as weakness against the dollar weighed.

EUR/USD hit session lows of 1.3607, the weakest since January 10 and was last down 0.38% to 1.3624.

The pair was likely to find support at 1.3570, the low of January 10 and resistance at 1.3679, the session high.

The dollar was broadly stronger after data on Tuesday showing that U.S. consumer spending increased in December indicated that the economic recovery is likely to continue to deepen going into this year.

U.S. retail sales rose by a modest 0.2% in December the Commerce Department said, while core retail sales, which excludes auto sales, rose by a larger-than-forecast 0.7%.

The data offset concerns over last week's surprising poor U.S. nonfarm payrolls report for December.

In the euro zone, data released on Wednesday showed that the region's trade surplus widened to EUR16.0 billion in November from a surplus of EUR14.3 billion in October. Analysts had expected the trade surplus to widen to EUR16.7 billion.

The report said euro area exports totaled EUR158.1 billion in November, down from EUR158.3 billion in October, while imports came in at EUR142.1 billion, down from EUR144.0 billion in the preceding month.

Elsewhere, Germany's Federal Statistics Office said Wednesday the economy expanded by just 0.4% in 2013 after increasing by 0.7% in 2012, as the crisis in the euro zone acted as a drag on growth. Analysts had been expecting growth of 0.5%.

German exports rose 0.6% last year, down from 3.2% in 2012, while imports rose 1.3%.

EUR/JPY was down 0.31% to 142.11 and EUR/GBP lost 0.26% to trade at 0.8297.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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