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Forex - EUR/USD edges higher as sentiment improves

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Investing.com - The euro edged higher against the U.S. dollar on Friday, as upbeat Chinese economic data supported demand for risk-related assets, but gains were capped by sustained U.S. debt concerns.

EUR/USD hit 1.3394 during late Asian trade, the pair's highest since January 15; the pair subsequently consolidated at 1.3387, adding 0.09%.

The pair was likely to find support at 1.3265, the low of January 15 and resistance at 1.3484, the high of February 29, 2012.

Market sentiment improved after official data showed that China's gross domestic product rose 7.9% in the fourth quarter from a year earlier, compared with expectations for a 7.8% rise, after a 7.4% increase in the previous quarter.

A separate report showed that industrial production in China rose more-than-expected in December, climbing at an annualized rate of 10.3% after a 10.1% rise the previous month. Analysts had expected industrial production to rise 10.1% last month.

Meanwhile, uncertainty over the U.S. debt ceiling deadlock continued to weigh after President Barack Obama urged Republicans earlier in the week to approve an increase in the borrowing limit without seeking policy concessions in return.

On Thursday, the head of the International Monetary Fund, Christine Lagarde, warned that the fight over raising the U.S. government's debt ceiling could be "catastrophic" for the global economy if not resolved in time.

Elsewhere, the euro was higher against the pound with EUR/GBP edging up 0.17%, to hit 0.8378.

Later in the day, the U.S. was to release preliminary data from the University of Michigan on consumer sentiment.

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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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