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Forex - EUR/USD trims gains on upbeat U.S. data, earnings

Published 10/23/2014, 12:04 PM
Updated 10/23/2014, 12:07 PM
Euro gives back gains against dollar on cheery U.S. jobless claims, earnings numbers

Euro gives back gains against dollar on cheery U.S. jobless claims, earnings numbers

Investing.com - The euro gave back gains against the dollar on Thursday after upbeat U.S. weekly jobless claims numbers and third-quarter earnings bolstered demand for the greenback.

In U.S. trading, EUR/USD was down 0.01% at 1.2648, up from a session low of 1.2614 and off a high of 1.2676.

The pair was likely to find support at 1.2604, the low from Oct. 10, and resistance at 1.2840, Tuesday's high.

The Department of Labor reported earlier that the number of individuals filing for initial jobless benefits in the week ending Oct. 18 increased by 17,000 to 283,000, broadly in line with forecasts.

The four-week average fell to 281,000, the lowest since May 2000, while continuing claims, which includes those receiving benefits for at least a second month in a row, also hit a 14-year low, of 2.35 million, which bolstered the U.S. currency.

Better-than-expected earnings from General Motors Company (NYSE:GM) as well as Caterpillar Inc (NYSE:CAT), the latter of which hiked its profit outlook, boosted dollar demand by reminding investors that despite hiccups here and there, the U.S. economy continues to recover and will likely warrant rate hikes next year.

Thursday's data wiped out the euro's earlier gains, as the single currency firmed earlier on upbeat European data.

Research group Markit Economics reported earlier that its preliminary manufacturing purchasing managers’ index for the euro area ticked up to 50.7 this month from a final reading of 50.3 in September. Analysts had expected the index to slide to 49.9.

The service-sector PMI held steady at 52.4, slightly above expectations of 52.0.

Elsewhere, the euro was up against the pound, with EUR/GBP up 0.17% at 0.7894, and up against the yen, with EUR/JPY up 0.96% at 136.83.

The yen took a dive on Thursday in wake of cheery U.S. and European data that enticed investors out of safe-haven positions in the Japanese currency.

On Friday, the Gfk think tank is to release its report on German business climate.

The U.S. is to round up the week with a report on new home sales.

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