Forex – EUR/USD slips lower as E.Z. industrial production disappoints

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Euro falls against dollar after industrial production reportEuro falls against dollar after industrial production report

Investing.com – The euro slipped lower against the U.S. dollar on Wednesday, after data showed that industrial production in the euro zone rose less than expected in September, while demand for the greenback remained broadly supported.

EUR/USD hit 1.2394 during European morning trade, the session low; the pair subsequently consolidated at 1.2451, shedding 0.20%.

The pair was likely to find support at 1.2357, the low of November 7 and a 26-month low and resistance at 1.2568, the high of November 5.

In a report, Eurostat said industrial production in the euro zone increased by 0.6% in September, below forecasts for a gain of 1.0%. Industrial production in August fell by 1.4%.

Year-on-year, industrial production inched up 0.6% in September from a year earlier, compared to expectations for a 0.2% decline and after dropping at a rate of 0.5% in the preceding month.

The report added to concerns over the outlook for economic growth in the single currency bloc after weak Italian data on Monday fuelled fears that its economy is falling back into a recession.

Meanwhile, demand for the dollar continued to be underpinned by expectations that the recovery in the U.S. will outstrip other major economies.

The euro was also lower against the pound, with EUR/GBP slipping 0.27% to 0.7814.

In the U.K., the Office for National Statistics reported that the number of people claiming unemployment benefits fell by 20,400 in October, below expectations for a decline of 24,900.

The U.K. unemployment rate was unchanged at 6.0% in the three months to September, compared to forecast for a downtick to 5.9%.

The report also showed that total average weekly earnings, excluding bonuses, rose by 1.3% in the three months to September, after a 0.9% increase in the three months to August.



Source By Breaking News Website | BreakingNews.WS