Forex - EUR/USD poised to close lower despite German data
Published Feb 22, 2013 03:40PM ET
In late U.S. trading Friday, EUR/USD fell 0.02% to 1.3187. The pair was likely to find support at 1.3039, the low of January 10 and resistance at 1.3245, the session high.
The euro sold off and is now hovering near six-month lows against the greenback after fter the EU Commission said the euro zone economy will shrink for a second year in 2013, driving unemployment higher as governments, consumers and companies curb spending.
The Commission forecast a 2013 GDP contraction of 0.3%, well above the November estimate calling for a contraction of 0.1%. Euro zone unemployment is expected to rise to 12.2%, above the Commission’s November estimate of 11.8% and above the 11.4% rate seen last year.
Good news out of Germany, the euro zone’s largest economy, has not been enough to boost the euro on Friday. Earlier today, the Ifo institute’s business climate index, jumped to 107.4 in February from a revised 104.3 in January. That is good for the best reading since April and topped the consensus estimate that called for an increase to 104.9
There were no marquee data points released in the U.S., but stocks there rebounded after two days of declines.
Traders will now turn their attention to elections in Italy scheduled for February 24-25. A surprise victory by former Prime Minister Silvio Berlusconi could roil Italian stocks and send the euro lower against the dollar.
Elsewhere, EUR/JPY rose 0.33% to 123.22 while EUR/CHF fell 0.16% to 1.2263. EUR/GBP gained 0.01% to 0.8650.
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Written By: Investing.com
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