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Forex - EUR/USD remains moderately higher after mixed U.S. data

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Investing.com -

Investing.com - The euro remained moderately higher against the U.S. dollar on Friday, after the release of mixed U.S. economic reports did little to support the greenback, although concerns over economic growth in the euro zone were expected to limit the single currency's gains.

EUR/USD hit 1.3405 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.3392, rising 0.22%.

The pair was likely to find support at 1.3342, the low of August 13 and resistance at 1.3433, the high of August 8.

In a preliminary report, the University of Michigan said that its consumer sentiment index ticked down to a nine-month low of 79.2 in August, from a reading of 81.8 the previous month. Analysts had expected the index to rise to 82.5 this month.

A separate report showed that U.S. industrial production rose 0.4% in July, beating expectations for a 0.3% gain, after an increase of 0.4% in June whose figure was revised from a previously estimated 0.2% rise.

Separately, the New York Federal Reserve said that its Empire State manufacturing index fell to a four-month low of 14.7 this month, from a reading of 25.6 in July, confounding expectations for a decline to 20.0.

Data also showed that U.S. producer price inflation rose 0.1% last month, in line with expectations, after a 0.4% increase in June.

Core producer price inflation, which excludes food, energy and trade, rose 0.2% in July, in line with market projections, and after a 0.2% gain the previous month.

Meanwhile, sentiment on the euro remained fragile after preliminary data on Thursday showed that the euro zone economy failed to grow in the three months to June.

The weak data added to pressure on the European Central Bank to do more to shore up growth after it cut rates to record lows in June.

The euro was also higher against the pound, with EUR/GBP edging up 0.16% to 0.8022.

In the U.K., official data earlier showed, in a second estimate, that U.K. gross domestic product grew 0.8% in the second quarter, in line with market expectations.

Year-on-year, the U.K. GDP expanded at a rate of 3.2%, compared to expectations for 3.1% growth.

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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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