Investing.com - The euro was trading close to six-week lows against the dollar on Thursday after Wednesday’s data showing that the euro zone economy contracted for a sixth successive quarter in the three months to March.
EUR/USD hit 1.2857 during late Asian trade, the session low; the pair subsequently consolidated at 1.2865, shedding 0.17%.
The pair was likely to find support at 1.2808, the low of April 2 and resistance at 1.2888, the session high.
Official data on Wednesday showed that the euro zone economy contracted by 0.2% in the first quarter, bringing the annualized rate of contraction to 0.9%.
Germany’s economy posted growth of 0.1%, below expectations for a 0.3% increase, while the French economy contracted by a larger than expected 0.2%.
The data fuelled expectations for further easing measures from the European Central Bank after the bank cut interest rates to a record low 0.5% earlier this month.
In the U.S., data on Wednesday showed that industrial production fell by 0.5% in April, more than forecasts for a 0.2% drop. The data undermined expectations that the Federal Reserve could begin to scale back its asset purchase program later this year.
The euro was little changed against the pound, with EUR/GBP dipping 0.03% to 0.8455 and edged lower against the yen, with EUR/JPY slipping 0.09% to 131.65.
Earlier Thursday, official data showed that Japan’s economy expanded by 0.9% in the first quarter, outstripping expectations for 0.7% growth.
