Forex - EUR/USD turns higher on E.Z. inflation data
Investing.com
Published Jul 31, 2015 07:43AM ET
Euro gains ground vs. dollar as CPI data supports
Investing.com - The euro turned higher against the U.S. dollar on Friday, as positive euro zone inflation data lent some support and as sentiment on the greenback mildly weakened ahead of a U.S. consumer sentiment report due later in the day.
EUR/USD hit 1.0989 during European afternoon trade, the session high; the pair subsequently consolidated at 1.0964, gaining 0.29%.
The pair was likely to find support at 1.0892, Thursday's low and resistance at 1.1086, the high of July 29.
The single currency found some support after data on Friday showed that the euro zone's consumer price inflation rose 0.2% in July, in line with expectations and unchanged from the previous montth.
Core CPI, which excludes food, energy, alcohol, and tobacco costs, increased by 1.0% this month, above expectations for an uptick of 0.8%.
A separate report showed that the euro zone's unemployment rate remained unchanged at 11.1% last month, in line with expectations.
The dollar had strengthened broadly after the Commerce Department reported on Thursday that U.S. gross domestic product expanded at an annual rate of 2.3% in the three months to June. First quarter growth was revised up to 0.6% from a previously reported contraction of 0.2%.
Although economists had forecast growth of 2.6% the report still indicated that the economy is on a solid footing.
The data came after the Federal Reserve said in its rate statement on Wednesday that the economy and the labor market had continued to strengthen, reinforcing expectations for an initial rate hike at its September meeting.
The euro was also higher against the pound, with EUR/GBP climbing 0.46% to 0.7039.
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Written By: Investing.com
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