COZforex: The euro rebounded from 3-month lows against the dollar on Thursday, but gains looked likely to remain limited as demand for the greenback continued to be underpinned by optimism over the strengthening US economic recovery.
EUR/USD pulled away from 1.2912, the pair’s lowest since December 10 to hit 1.2971 amid U.S. morning trade, easing up 0.08%. COZFX strategist Nigel Boynton said, EUR/USD is predicted to find support at 1.2891, and a drop through could take it to the next support line of 1.2835. Meanwhile, the pair is predicted to find its first resistance at 1.3034, and a increase through could take it to the next resistance line of 1.3121.
The unexpectedly strong data, together with recent stronger-than-forecast data on nonfarm payrolls and retail sales fuelled optimism over the durability of the US economic recovery.
Meanwhile, the US Dollar gained momentum on better-than-expected US data. Retail sales in the US increase 1.1% in February, following an upwardly revised 0.2% increase recorded in January. Market had expected the retail sales to edge up 0.5% in February. Besides, the US Commerce Department reported that the business inventories in the US rise 1.0% in January, following a revised 0.3% growth recorded in December. Market had expected the business inventories to rose 0.5% in January, compared to the 0.1% growth originally reported for the previous month. In addition, the US budget deficit narrowed to $203.5 billion in February, from a $231.7 billion deficit reported in the same period last year.
The euro remained under pressure amid concerns over political uncertainty in Italy and prospects for a bailout for Cyprus. Earlier Thursday, official data showed that employment in the euro zone dropped 0.3% in the fourth quarter from the third, reinforcing concerns over the economic outlook for the region.
In its monthly bulletin on Thursday the European Central Bank said the euro zone economy is expected to recover gradually later this year, but risks to the recovery remained if governments failed to implement structural reforms.
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EUR/USD pulled away from 1.2912, the pair’s lowest since December 10 to hit 1.2971 amid U.S. morning trade, easing up 0.08%. COZFX strategist Nigel Boynton said, EUR/USD is predicted to find support at 1.2891, and a drop through could take it to the next support line of 1.2835. Meanwhile, the pair is predicted to find its first resistance at 1.3034, and a increase through could take it to the next resistance line of 1.3121.
The unexpectedly strong data, together with recent stronger-than-forecast data on nonfarm payrolls and retail sales fuelled optimism over the durability of the US economic recovery.
Meanwhile, the US Dollar gained momentum on better-than-expected US data. Retail sales in the US increase 1.1% in February, following an upwardly revised 0.2% increase recorded in January. Market had expected the retail sales to edge up 0.5% in February. Besides, the US Commerce Department reported that the business inventories in the US rise 1.0% in January, following a revised 0.3% growth recorded in December. Market had expected the business inventories to rose 0.5% in January, compared to the 0.1% growth originally reported for the previous month. In addition, the US budget deficit narrowed to $203.5 billion in February, from a $231.7 billion deficit reported in the same period last year.
The euro remained under pressure amid concerns over political uncertainty in Italy and prospects for a bailout for Cyprus. Earlier Thursday, official data showed that employment in the euro zone dropped 0.3% in the fourth quarter from the third, reinforcing concerns over the economic outlook for the region.
In its monthly bulletin on Thursday the European Central Bank said the euro zone economy is expected to recover gradually later this year, but risks to the recovery remained if governments failed to implement structural reforms.
COZ forex UK