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Forex - EUR/USD erases gains, hits 2-month lows

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Investing.com -

Investing.com - The euro erased gains against the U.S. dollar on Friday, falling to a two-month lows as hints of additional stimulus measures by the European Central Bank overshadowed the release of positive economic reports from the euro zone earlier in the day.

EUR/USD pulled away from 1.1140, the session high, to hit 1.1023 during U.S. morning trade, declining 0.74%.

The pair was likely to find support at 1.0959, the low of August 11 and resistance at 1.1140, the session high.

The single currency was hit after ECB President Mario Draghi said the central bank will "reexamine" its monetary policy in December, hinting at the possibility for further easing measures.

Speaking at the ECB's monthly press conference, Mr. Draghi added that the ECB's quantitative easing program is set to run until 2016 or beyond if necessary.

Earlier Friday, research group Markit said that Germany's preliminary manufacturing purchasing managers' index ticked down to 51.6 this month from 52.3 in September, while the services PMI rose to 55.2 from 54.1.

In France, the preliminary manufacturing PMI came in at 50.7 in October, Market reported, up from 50.6 the previous month, while the services PMI ticked up to 52.3 from 51.9.

For the entire euro zone, Markit said the composite PMI, which includes both manufacturing and service sector activity, rose to 54.0 in October from 53.6 the previous month.

Meanwhile, the dollar remained supported after the U.S. Department of Labor reported on Thursday that the number of individuals filing for initial jobless benefits in the week ending October 17 increased by 3,000 to 259,000 from the previous week's total of 256,000.

Analysts had expected jobless claims to rise by 9,000 to 265,000.

In addition, the U.S. National Association of Realtors said that existing home sales increased by 4.7% to 5.55 million units last month from 5.30 million in August. Analysts had expected existing home sales to rise 1.4% to 5.38 million units in September.

The euro was also lower against the pound, with EUR/GBP sliding 0.47% to 0.7182.

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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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