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Forex - Euro lower against broadly stronger dollar

Published 09/25/2015, 10:05 AM
Updated 09/25/2015, 10:05 AM
© Reuters.  Euro trades lower vs. dollar after strong U.S. economic reports

Investing.com - The euro was lower against the U.S. dollar on Friday, as upbeat U.S. second quarter growth data added to expectations for a rate hike before the end of the year, sending the greenback broadly higher.

EUR/USD hit 1.1117 during U.S. morning trade, the pair's lowest since Wednesday; the pair subsequently consolidated at 1.1186, declining 0.42%.

The pair was likely to find support at 1.1102, Wednesday's low and resistance at 1.1296, Thursday's high.

The Bureau of Economic Analysis reported on Friday that U.S. gross domestic product increased by 3.9% in the last quarter, exceeding expectations for a 3.7% rise and up from a growth rate of 3.7% in the three months to March.

Separately, the University of Michigan said its consumer sentiment index rose to 87.2 this month from 85.7 in August, beating expectations for an uptick to 86.7.

The data came a day after Federal Reserve Chair Janet Yellen said she expected the central bank to begin raising rates later in 2015, as long as inflation remained stable and the U.S. economy was strong enough to boost employment.

Meanwhile, the euro remained supported after the German research institute Ifo reported on Thursday that its business climate index ticked up to 108.5 this month from August’s 108.4. It was the highest reading in four months and was ahead of forecasts of 108.0.

The single currency also strengthened after European Central Bank President Mario Draghi said on Wednesday that it was too early decide whether or not to add stimulus measures.

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The euro was also lower against the pound, with EUR/GBP slipping 0.17% to 0.7354.

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