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Forex - EUR/USD hits 17-month high after weak U.S. data

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Forex Pros - The euro advanced to a 17-month high against the U.S. dollar on Wednesday, after reports showing the U.S. added fewer private sector jobs than expected last month while the U.S. service sector contracted unexpectedly.

EUR/USD hit 1.4940 during U.S. morning trade, the pair's highest since December 4, 2009; the pair subsequently consolidated at 1.4924, gaining 0.67%.

The pair was likely to find support at 1.4753, Tuesday's low and resistance at 1.5090, the high of December 4, 2009.

Earlier in the day, payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 179,000 in April, after rising by an upwardly revised 207,000 the prior month. Analysts had expected non-farm private sector employment to increase by 200,000 in April.

A separate report by the Institute of Supply Management said its non-manufacturing purchasing manager's index fell to 56.9 in April, compared to a reading of 57.3 in March. Analysts had expected the index to ease up to 57.4 in April.

On the index, a reading above 50.0 indicates the non-manufacturing sector economy is generally expanding, below 50.0 indicates the sector is contracting.

The weak data underlined the view that the Federal Reserve is unlikely to raise interest rates for some time to come.

The euro was also higher against the pound, with EUR/GBP rising 0.26% to hit 0.9015.

The single currency remained well supported ahead of the European Central Bank's policy setting meeting on Thursday, with the bank expected to prepare markets for a possible rate hike in June.

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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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