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Forex - EUR/USD trims losses on Empire State report

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Investing.com - The euro trimmed losses against the U.S. dollar on Friday, after the release of strong New York manufacturing data, although concerns over the situation in the euro zone continued to dampen demand for the single currency.

EUR/USD pulled away from 1.3307, the pair's lowest since January 24, to hit 1.3360 during European afternoon trade, still down 0.02%.

The pair was likely to find support at 1.3287, the low of January 24 and resistance at 1.3456, Thursday's high.

In a report, the Federal Reserve of New York said that its index of manufacturing activity improved far more-than-expected in February, rising to 10.0 from a reading of minus 7.8 the previous month.

Analysts had expected the index to improve to minus 2 this month.

But sentiment on the euro remained fragile after official data on Thursday showed that euro zone gross domestic product contracted by 0.6% in the three months to December, compared to expectations for a 0.4% decline, after a 0.1% contraction in the third quarter.

It was the fastest rate of decline since 2009 and marked a third consecutive quarter of contraction.

In addition, Germany's economy, the euro zone's largest, contracted by 0.6% in the in the fourth quarter, more than expectations for a 0.5% drop on declining exports and investment.

Elsewhere, the euro was steady against the pound with EUR/GBP dipping 0.03%, to hit 0.8620.

Later in the day, the U.S. was to produce data on industrial production, while the University of Michigan was to release preliminary data on consumer sentiment and inflation expectations.

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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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