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Forex - Euro holds near 2-year highs vs. dollar

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Investing.com - " The euro was trading close to two-year highs against the dollar on Thursday as expectations that the Federal Reserve will delay plans to start tapering stimulus outweighed soft euro zone data.

EUR/USD hit 1.3825 during U.S. morning trade, the highest since November 2011; the pair subsequently consolidated at 1.3802, 0.17% higher for the day.

The pair was likely to find support at 1.3740 and resistance at 1.3850.

The dollar remained under pressure after data earlier in the week showing that U.S. jobs growth slowed in September cemented expectations that the U.S. central bank would continue the current pace of its asset purchase program well into next year.

The euro eased back from session highs after data on euro zone manufacturing and services activity indicated that the recovery in the region remains sluggish.

The preliminary reading of the euro zone's manufacturing purchasing managers' index ticked up to 51.3 in October from a final reading of 51.1 in September, slightly below expectations for a reading of 51.4.

The euro zone services PMI fell to 50.9 this month from 52.2 in September.

Germany's manufacturing PMI edged up to 51.5 from a final reading of 51.1 in September, but the services PMI declined to a three-month low of 52.3.

The dollar had little reaction after data released on Thursday showed that the number of people who filed for unemployment assistance in the U.S. fell less-than-expected last week.

The Department of Labor said the number of individuals filing for initial jobless benefits declined by 12,000 to a seasonally adjusted 350,000. Analysts had expected U.S. jobless claims to fall by 22,000 to 340,000 last week.

A separate report showed that the U.S. trade deficit widened 0.4% to a seasonally adjusted USD38.8 billion in August from a deficit of USD38.6 billion in July. Economists had forecast a deficit of USD39.5 billion.

Elsewhere, the euro was slightly higher against the pound and the yen, with EUR/GBP up 0.16% to 0.8537 and EUR/JPY rising 0.17% to 134.41.

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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.


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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