Forex - EUR/USD nears 22-month lows on U.S. data, Fed comments
Published Sep 25, 2014 11:58AM ET
Euro slides as dollar firms on solid U.S. data, hawkish Fed comments
Investing.com - The euro flirted with 22-month lows against a firming dollar on Thursday after data revealed fewer in the U.S. sought first-time joblessness assistance last week, while hawkish comments out of the Federal Reserve boosted demand for the greenback as well.
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In U.S. trading, EUR/USD was down 0.37% at 1.2733, up from a session low of 1.2700 and off a high of 1.2784.
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The pair was likely to find support at 1.2688, the low from Nov. 16, 2012, and resistance at 1.2903, Tuesday's high.
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The U.S. Labor Department reported earlier that the number of individuals filing for initial jobless benefits in the week ending Sept. 20 rose by 12,000 to 293,000, up from the previous week's revised total of 281,000.
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Analysts had expected jobless claims to rise by 19,000 to 300,000 last week, and the better-than-expected number drew applause for the greenback.
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Separately, official data showed that U.S. durable goods orders dropped by 18.2% in August, after an increase of 22.5% in July, whose figure was revised down from a previously estimated gain of 22.6%. Analysts had expected durable goods orders to decline by 18.0% last month, and the in-line figure also gave the dollar room to firm.
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Core durable goods orders, which are stripped of volatile transportation items, rose 0.7% last month, in line with expectations, after falling 0.5% in July, whose figure was revised from a previously estimated 0.7% drop.
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The dollar saw added support after Dallas Federal Reserve President Richard Fisher said the U.S. central bank may start raising benchmark interest rates around the spring of 2015, earlier than many market expectations.
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While the Fed has suggested its bond-buying program could close in October, uncertainty remains as to when rate hikes may begin in 2015.
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The euro, meanwhile, came under pressure after European Central Bank President Mario Draghi reiterated on Thursday the bank's commitment to act with more policy measures to boost inflation in the euro zone.
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"We stand ready to use additional unconventional instruments within our mandate, and alter the size or composition of our unconventional interventions should it become necessary to further address risks of a too prolonged period of low inflation," Draghi said.
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A day earlier, Mario Draghi had already vowed to keep monetary policy "accommodative" for as long as needed, and to use every tool at the ECB's disposal to fight deflation.
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Elsewhere, the euro was down against the pound, with EUR/GBP down 0.13% at 0.7812, and down against the yen, with EUR/JPY down 0.56% at 138.58.
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On Friday, markets will move on U.S. gross domestic product and consumer-sentiment data as well as a German report on consumer climate.
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Written By: Investing.com
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