Shutterstock photo
Markets

Forex - EUR/USD rises in early U.S. trade

Shutterstock photo

Shutterstock photo

Forexpros - The euro regained ground against the U.S. dollar Friday, as Wall Street reacted positively to encouraging retail sales numbers but overall market sentiment dimmed on data showing a sharp drop in U.S. consumer sentiment.

EUR/USD hit 1.4292 during early U.S. trade, the pair's highest since August 9; the pair subsequently consolidated at 1.4243, adding 0.02%.

The pair was likely to find support at 1.4105, Thursday's low, and resistance at 1.4401, Wednesday's high.

Early Friday, a Census Bureau said that U.S. core retail sales rose to a seasonally adjusted 0.5%, from a revised figure of 0.2% in the previous month. Analysts had expected U.S. core retail sales to rise 0.2% last month.

But the promising sales figures were tempered by the release of the University of Michigan index on consumer sentiment which dropped to 54.9 from 63.7 in July. Economists had expected a reading of 61. It was the lowest reading for the index since May of 1980.

In mid-day trade the Dow Jones Industrial Average picked up 1.6%, the Nasdaq Composite Index advanced 0.95% and the S&P 500 was lifted 1%.

In the first day of a ban on short-selling by Spain, France, Belgium and Italy, European stocks ended the trading day higher. The moratorium on short-selling was introduced to stem recent volatility in Europe's financial sector.

France's CAC 40 rose by 4% to 3,206, the FTSE 100 gained 2.8% to 5,311.80, and Germany's DAX 30 added 3.5% to 5,997.74.

The euro was lower against both the British pound and the Japanese yen, with EUR/GBP falling 0.25% to hit 0.8747, and EUR/JPY down by 0.03% to hit 109.36.

The Italian government was expected to vote later on a package of spending cuts and tax increases to appease European Central Bank demands for action to strengthen its finances.

Forex News

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.

Other Topics

ForEx

Latest Markets Videos