We have updated our privacy policy and terms & conditions. Find out more here.
4
 

Forex - EUR/USD inches up as investors avoid dollar before Fed decision

By Investing.com  |  Forex  |  Sep 13, 2013 06:09PM GMT  |   Add a Comment
 
AA
+
-
Investing.com - The euro crept up against the dollar on Friday as investors jumped to the sidelines to wait for the Federal Reserve's decision next week on the fate of its monthly USD85 billion bond-buying program.

Forex - EUR/USD inches up as investors avoid dollar before Fed decision
In U.S. trading on Friday, EUR/USD was up 0.04 % at 1.3304, up from a session low of 1.3254 and off from a high of 1.3321.

The pair was likely to find support at 1.3254, the earlier low, and resistance at 1.3324, Thursday's high.

In the U.S. earlier, the Thomson Reuters/University of Michigan preliminary U.S. consumer sentiment index fell to a six-month low of 76.8 in September from 82.1 in August, worse than expectations for a decline to 82.0.

Elsewhere, official data showed that U.S. retail sales rose 0.2% in August, missing expectations for a 0.4% rise after an upwardly revised 0.4% increase the previous month.

Core retail sales, excluding automobiles, rose 0.1% last month, short of expectations for a 0.3% gain after an upwardly revised 0.6% increase in July.

Despite soft U.S. data released earlier, consensus remained firm on Friday that the Federal Reserve will announce plans to taper its monthly USD85 billion asset-purchasing program at its Sept. 17-18 policy meeting, as the economy is still improving.

Fed asset purchases weaken the dollar to spur recovery, and talk of their dismantling can strengthen the greenback though the U.S. currency edged lower on sentiments that the Fed will start off tapering its stimulus program very gradually.

Elsewhere, separate data showed that the U.S. producer price index rose 0.3% in August, more than the expected 0.2% after a flat reading the previous month, which cemented expectations the Fed will begin buying less bonds to stimulate the economy.

Core producer price inflation, excluding food and energy, was flat last month, compared to expectations for a 0.1% rise, after a 0.1% gain in July.

Meanwhile, euro zone finance ministers were meeting in Vilnius, Lithuania, to discuss reforms to strengthen the region's banking sector.

On Thursday, the European Parliament approved legislation to allow the European Central Bank to oversee banks in the 17-nation currency bloc. ECB President Mario Draghi said the vote was “a real step forward” in establishing a banking union.

Elsewhere, the euro was down against the pound and down against the yen, with EUR/GBP trading down 0.45% at 0.8377 and EUR/JPY trading down 0.25% at 132.04.









Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Add a Comment

 

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

EUR/JPY
 
 
 
Are you sure you want to delete this chart?
 
 
 
Are you sure you want to delete this chart?
 
 
 

Successfully Reported

Thank you. This comment has been flagged for a moderator.
_touchLoadingMsg