IV:Forex - Euro slides to session lows against dollar
Investing.com - The euro slid to session lows against the dollar on Wednesday after data showed that the unemployment rate in the euro zone remained unchanged at 12.1% in November, while euro zone retail sales rebounded strongly in November.
EUR/USD hit session lows of 1.3572 during European morning hours and was last down 0.23% to 1.3583.
The pair was likely to find support at 1.3525, the low of December 3 and resistance at 1.3634, the session high.
Eurostat said that the euro zone’s unemployment rate held steady at 12.1% in November, in line with expectations and unchanged from October.
September's rate was originally given as 12.2%, but this was revised down to 12.1% Eurostat said.
The youth unemployment rate is now at 23.6% in the European Union and 24.2% in the euro area, up from 23.4% and 23.9% a year ago.
The report came one day after data showed that the annual rate of inflation in the euro zone slowed to 0.8% in December from 0.9% the previous month, fuelling concerns over the threat of deflation ahead of the European Central Bank’s first policy meeting of the year on Thursday.
The euro’s losses were held in check after Eurostat said retail sales rose 1.4% in November, the biggest rise since November 2001, recovering from a 0.4% fall in October.
A separate report showed that German factory orders surged 2.1% in November, surpassing expectations for a gain of 1.5%.
Demand for the dollar continued to be underpinned after data released on Tuesday showed that the U.S. trade deficit shrank to the lowest level in four years in November as exports rose to a record high.
Investors were turning their attention to the minutes of the Federal Reserve’s December meeting, due for release later Wednesday, for indications on the possible timing of further reductions in the bank’s stimulus program.
Investors were also awaiting Friday’s U.S. nonfarm report for December for indications of the strength of the recovery in the labor market.
Elsewhere, the euro was down against the pound, with EUR/GBP down 0.29% to 0.8277 and slipped lower against the yen, with EUR/JPY dipping 0.05% to 142.32.
