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Forex - EUR/USD slides on European growth concerns

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Investing.com -

Investing.com - The euro slid against the dollar on Friday as investors sought safety in the greenback on concerns the European economy will continue to soften while the U.S. economy gains steam going forward.

In U.S. trading, EUR/USD was down 0.45% at 1.2633, up from a session low of 1.2610 and off a high of 1.2716.

The pair was likely to find support at 1.2499, last Friday's low, and resistance at 1.2792, Thursday's high.

The single currency continued to come under pressure on concerns the European economy is floundering and may require fresh ECB stimulus measures.

In Europe on Thursday, data revealed that Germany exports fell 5.8% in August, which took its toll on Friday.

In France earlier, data revealed industrial production remained unchanged in August, better than expected 0.2% contraction, while Italy's figure expanded 0.3%, missing market calls for a 0.5% expansion

The euro slid on concerns monetary policy remains poised to loosen to steer the continent away from deflationary decline, as ECB President Mario Draghi has said monetary authorities will do what's necessary to kick start the European recovery.

Meanwhile in the U.S., import prices fell 0.5% in September from August, better than market calls for a 0.7% contraction, though still a decline nonetheless, a sign a stronger dollar and a softer global economy could water down inflationary pressures in the U.S.

Earlier this week, the Federal Reserve suggested rate hikes might not come as quickly than markets are expecting, though the dollar firmed anyway due to ongoing expectations for U.S. and European monetary policies to diverge.

Elsewhere, the euro was down against the pound, with EUR/GBP down 0.11% at 0.7870, and down against the yen, with EUR/JPY down 0.46% at 136.29.

In the U.K., the Office for National Statistics reported on Friday that the trade deficit narrowed to £9.10 billion in August from £10.41 billion in July, whose figure was revised from a previously estimated deficit of £10.19 billion.

Analysts had expected the trade deficit to narrow to £9.60 billion in August.

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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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