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Forex - EUR/USD drops to 1-month lows in risk-off trade

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Investing.com - The euro dropped to one-month lows against the U.S. dollar on Friday, as demand for the safe-haven dollar continued to strengthen despite positive Spanish unemployment data released earlier in the trading session.

EUR/USD hit 1.3607 during U.S. morning trade, the pair's lowest since December 5; the pair subsequently consolidated at 1.3609, retreating 0.45%.

The pair was likely to find support 1.3544, the low of December 5 and resistance at 1.3674, the session high.

Market sentiment weakened earlier, after data showed that China's non-manufacturing purchasing managers' index fell to 54.6 in December, from a reading of 56.0 the previous month.

Reports earlier in the week showed that China's final HSBC PMI inched down to 50.5 in December from a reading of 50.8 in November, while China's manufacturing PMI fell to a four-month low of 51.0 last month from 51.4 in November.

Meanwhile, the greenback remained supported after the U.S. Department of Labor on Thursday said the number of individuals filing for initial jobless benefits in the week ending December 28 declined by 2,000 to a seasonally adjusted 339,000.

Analysts had expected U.S. jobless claims to fall by 7,000 to 334,000 last week from the previous week's revised total of 341,000.

In the euro zone, official data showed that the number of unemployed people in Spain dropped by 107,600 in December, compared to expectations for a 20,000 rise, after 2,500 decline the previous month.

The euro was lower against the pound, with EUR/GBP falling 0.19% to 0.8292.

Markit research group earlier said the U.K. construction PMI fell to 62.1 in December, from a reading of 62.6 the previous month. Analysts had expected the index to drop to 62.0 last month.

The report came after industry data showed that U.K. house price inflation rose 1.4% in December, beating expectations for a 0.7% uptick, after an upwardly revised 0.7% increase in November.

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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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