Shutterstock photo
Markets

Forex - EUR/USD trims losses after upbeat U.S. data

Shutterstock photo

Shutterstock photo

Investing.com - The euro trimmed losses against the U.S. dollar on Friday, after the release of better-than-expected U.S. economic reports, while investors eyed ongoing U.S. budget negotiations.

EUR/USD pulled away from 1.3166, the pair's lowest since December 21, to hit 1.3229, still down 0.07%.

The pair was likely to find support at 1.3159, the low of December 21 and resistance at 1.3296, the high of December 20.

Industry data showed that pending home sales in the U.S. rose more-than-expected in November, rising by 1.7% after a 5% increase the previous month. Analysts had expected pending home sales to tick up 1% in November.

A separate report showed that Chicago's purchasing magaers' index rose to 51.6 in December, from a reading of 50.4 the previous month, beating expectations for a rise to 51.0.

Meanwhile, investors remained cautious as U.S. President Barack Obama was to meet congressional leaders later Friday at the White House for last-minute talks on a "fiscal cliff" deal to avoid automatic tax increases and broad spending cuts that threaten the US economy's recovery.

The meeting comes just four days before the government goes over the so-called fiscal cliff, assuming no deal is reached. Without a deal, the U.S. could fall back into recession and drag much of the world down with it.

The euro was also lower against the pound with EUR/GBP falling 0.33%, to hit 0.8195.

Also Friday, Markit research group said that the euro zone's retail purchasing managers' index deteriorated to 44.5 in December from a reading of 45.8 the previous month.

Later in the day, the U.S. was to publish official data on crude oil stockpiles and natural gas inventories.

Investing.com - Investing.com 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.

Read more News on Investing.com or Follow us on Twitter at @ Newsinvesting

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