Forex - EUR/USD trims losses after ISM report

Shutterstock photo - The euro trimmed losses against the U.S. dollar on Friday, boosted by the release of upbeat U.S. economic reports, although the minutes of the Federal Reserve's latest policy meeting continued to dampen risk sentiment.

EUR/USD pulled away from 1.2999, the pair's lowest since December 11, to hit 1.3047 during U.S. morning trade, still down 0.02%

The pair was likely to find support at 1.2929, the low of December 11 and resistance at 1.3174, the high of December 14.

Sentiment improved after the Institute of Supply Management said its non manufacturing index improved to 56.1 in December from a reading of 54.7 the previous month, beating expectations for a rise to 54.2.

The data came after the Bureau of Labor Statistics said the U.S. economy added 155,000 jobs in December, more than the expected 150,000 increase, after an upwardly revised 161,000 rise the previous month.

In addition, the U.S. employment rate remained unchanged at 7.8% last month, compared with expectations for a decline to 7.7%.

But markets were jittery 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.

Investors also remained cautious over the longer term outlook in the U.S., with negotiations on raising the debt ceiling still to come in February.

In the euro zone, preliminary data earlier showed that consumer price inflation remained unchanged at an annualized rated of 2.2% last month. Analysts had expected consumer price inflation to tick down to 2.1% in December.

Elsewhere, the euro was higher against the pound with EUR/GBP rising 0.38%, to hit 0.8131.

Also Friday, Markit research group said that the U.K. service sector purchasing managers' index deteriorated to 48.9 in December from a reading of 50.2 the previous month, falling back into contraction territory for the first time since January 2011.

Analysts had expected the index to tick up to 50.4 last month. - offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.

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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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