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Forex - EUR/USD remains close to 2-1/2 week low in cautious trade

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Investing.com - The euro remained close to a two-and-a-half week low against the U.S. dollar on Thursday, after the release of mixed U.S. employment data, while concerns over future U.S. debt ceiling negotiations continued to weigh on sentiment.

EUR/USD hit 1.3087 during U.S. morning trade, the pair's lowest since December 14; the pair subsequently consolidated at 1.3106, dropping 0.61%.

The pair was likely to find support at 1.3067, the low of December 14 and resistance at 1.3191, the session high.

Payroll processing firm ADP said earlier that non-farm private employment rose by a seasonally adjusted 215,000 in December, above expectations for an increase of 133,000.

The previous month's figure was revised up to a gain of 148,000 from a previously reported increase of 118,000.

Separately, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending December 29 rose by 10,000 to a seasonally adjusted 372,000, compared to expectations for a decline of 7,000 to 355,000.

Jobless claims for the preceding week were revised up to 362,000 from a previously reported 350,000.

Meanwhile, investors remained concerned over the longer term fiscal outlook in the U.S., with negotiations on raising the U.S. debt ceiling still to come in February.

Echoing the growing nervousness over the debt ceiling debate, a spokesman from the International Monetary Fund warned that "more remains to be done" to lower the U.S. debt load.

Elsewhere, the euro was steady against the pound with EUR/GBP dipping 0.01%, to hit 0.8111.

Also Thursday, official data showed that the number of unemployed people in Germany rose far less-than-expected in November, rising by 3,000 after a 5,000 increase the previous month.

Analysts had expected the number of unemployed people to rise by 10,000 in November.

Germany's unemployment rate remained unchanged at 6.9% in November, in line with expectations.

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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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