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Forex - EUR/USD tumbles to 6-day low on weak China trade data

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Forex Pros - The euro tumbled to a six-day low against the U.S. dollar on Thursday, after unexpectedly poor Chinese trade data fanned fears over a slowdown in global growth while concerns over euro zone sovereign debts also weighed.

EUR/USD hit 1.3805 during late Asian trade, the pair's lowest since March 2; the pair subsequently consolidated at 1.3825, shedding 0.56%.

The pair was likely to find support at 1.3710, the low of February 28 and resistance at 1.3940, Wednesday's high.

Earlier in the day, government data showed that China unexpectedly posted a trade deficit of USD7.3 billion in February, it's largest in seven years, as the Lunar New Year holiday disrupted export activity. China's exports rose only 2.4% from a year earlier, markedly lower than January's 37.7% rise.

Meanwhile, on Wednesday, concerns over the euro zone's sovereign debt problem saw the cost of insuring Portuguese government debt against default soar to a euro-lifetime high, adding to fears that Lisbon will need a bailout.

The euro was also down against the pound, with EUR/GBP shedding 0.35% to hit 0.08553.

Later in the day, the European Central Bank was to publish its monthly bulletin, while the U.S. was to publish a key weekly report on initial jobless claims as well as data on the country's trade balance.

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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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