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Forex - EUR/USD gains on weak data, falling Spanish bond yields

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Shutterstock photo - The euro rose against the dollar on Thursday after a regional manufacturing gauge in the U.S. missed expectations, while falling yields at a Spanish government bond auction bolstered demand for the single currency.

In U.S. trading on Thursday, EUR/USD was up 0.30% at 1.3072, up from a session low of 1.3021 and off from a high of 1.3088.

The pair was likely to find support at 1.3001, Wednesday's low, and resistance at 1.3201, Tuesday's high.

Manufacturing in the Philadelphia area of the U.S. disappointed earlier.

The Federal Reserve's Philly manufacturing index fell to 1.3 in April from 2.0 in March, defying expectations for a 3.0 reading.

The numbers came days after a similar Fed index for New York State also failed to live up to market expectations and fueled talk the U.S. central bank won't rush to dismantle stimulus programs that weaken the greenback to spur investing, job creation and recovery.

Elsewhere in the U.S., the Department of Labor reported earlier that the number of individuals filing for initial jobless benefits last week rose by 4,000 to 352,000, surpassing market calls for an increase of 2,000 to 350,000.

Jobless claims for the preceding week were revised up by 2,000 to 348,000.

Meanwhile in Europe, Spain sold EUR4.71 billion in three-year and 10 year bonds, beating a target of EUR4.5 billion, while falling yields there and elsewhere in Europe prompted investors to take up euro positions, which came at the dollar's expense.

Bond yields in Europe have fallen in recent weeks due to the Bank of Japan's decision to beef up its stimulus programs, which have made European bonds more attractive in the eyes of Japanese and other investors.

The euro, meanwhile, was up against the pound and up against the yen, with EUR/GBP trading up 0.02% at 0.8552, and EUR/JPY trading up 0.32% at 128.31.

On Friday, the eurozone is to release official data on its current account balance, while Germany is to produce government data on producer prices. - offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.

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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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