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Forex - EUR/USD hits 9-month high on soft U.S. trade figures, ECB policy

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Investing.com - The euro rose against the dollar on Friday, hitting a 9-month high after the U.S. reported that its trade deficit widened unexpectedly in November.

Demand for the euro carried over from Thursday, when the European Central Bank voted unanimously to keep interest unchanged at 0.75%.

In U.S. trading on Friday, EUR/USD was trading up 0.61% at 1.3354, up from a session low of 1.3249, and off from a high of 1.3364.

The pair was likely to find support at 1.3037, Wednesday's low, and resistance at 1.3379, the high from April 2, 2012.

The U.S. government earlier reported that the country's trade deficit widened unexpectedly in November, expanding to USD48.7 billion from a USD42.1 billion deficit during the previous month.

Analysts had expected the trade deficit to narrow to USD41.3 billion in November, though gains in imports of consumer goods painted a picture of improving consumer demand in the U.S., which gave investors room to breathe easier and take on some risk.

Consumer spending drives about 70% of total U.S. economic output.

Meanwhile, the euro continued to see support in wake of the ECB's surprisingly bullish take on the European economy.

While most market participants were expecting the monetary authority to leave benchmark lending rates unchanged, not all did, while others were expecting more cautious language from ECB President Mario Draghi, who predicted recovery to gain steam later this year.

The euro, meanwhile, was up against the pound and up against the yen, with EUR/GBP trading up 0.85% at 0.8278, and EUR/JPY trading up 1.08% at 119.11.

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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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