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Forex - EUR/USD slips lower after Fed minutes

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Investing.com - The euro slipped lower against the U.S. dollar on Friday, despite better-than-expected German data, after Federal Reserve officials expressed concerns about continuing to expand monetary easing measures.

EUR/USD 1.3016 during late Asian trade, the pair's lowest since December 12; the pair subsequently consolidated at 1.3020, falling 0.21%.

The pair was likely to find support at 1.2929, the low of December 11 and resistance at 1.3097, the high of December 12.

The euro shrugged off data showing that retail sales in Germany rose by 1.2% in November, beating expectations for a 0.8% increase, after a 1.3% decline the previous month.

Investors remained cautious after the minutes of the Fed's December policy meeting showed that officials began debating an end to bond-buying as early as this year even while preparing to boost stimulus to a new record.

In addition, the minutes revealed concerns over a balance sheet that may grow to more than USD4 trillion while potentially distorting financial markets and providing less support to growth.

Elsewhere, the euro was steady against the pound with EUR/GBP inching up 0.06%, to hit 0.8106.

Later in the day, the euro zone was to publish preliminary data on consumer price inflation, while the U.S. was to produce official data on nonfarm payrolls and the overall unemployment rate.

In addition, the Institute of Supply Management was to release a report on service sector activity.

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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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