Forex - EUR/USD gains on U.S. monetary uncertainty
Published Jul 26, 2013 01:40PM ET
In U.S. trading on Friday, EUR/USD was up 0.04% at 1.3283, up from a session low of 1.3253 and off from a high of 1.3296.
The pair was likely to find support at 1.3166, Thursday's low, and resistance at 1.3296, the earlier high.
On Thursday, the Labor Department reported that the number of individuals filing for initial jobless benefits last week increased by 7,000 to 343,000 compared with expectations for a gain of 4,000 to 340,000.
The numbers weakened the dollar by keeping expectations alive the Federal Reserve will continue stimulating the economy, especially by keeping its monthly USD85 billion bond-buying program in place.
Monetary stimulus programs weaken the dollar by keeping borrowing costs low across the economy.
Offsetting that data Friday, the Thomson Reuters/University of Michigan consumer sentiment rose more than expected in July, hitting 85.1from 83.9 in June.
Analysts had expected the index to rise to 84.0 this month.
The report also said that inflation expectations fell to 3.1% this month, from 3.3% in June.
The conflicting data kept the dollar lower though steady in a session that looked forward to next week, when the Bureau of Labor Statistics is scheduled to release its July jobs report, which could provide more insight as to when stimulus programs end.
The euro, meanwhile, was up against the pound and down against the yen, with EUR/GBP trading up 0.02% at 0.8634 and EUR/JPY trading down 1.16% at 130.30.
In Japan, official data earlier showed that core consumer price inflation in Tokyo, which excludes fresh food, rose to an annualized rate of 0.4% in July, from a flat reading the previous month.
Analysts had expected core consumer price inflation to rise to 0.3% this month.
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Written By: Investing.com
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