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Forex – EUR/USD Eases Off 6-day High As Risk Aversion Weighs
Written by article default Monday, 21 February 2011 14:26
The euro was lower against the U.S. dollar on Monday, as risk aversion arising from ongoing political unrest in the Middle East weighed but the single currency was supported following a flurry of better-than-expected euro zone data.EUR/USD hit 1.3663 during European early afternoon trade, the daily low; the pair subsequently consolidated at 1.3672, slipping 0.13%.
The pair was likely to find support at 1.3535, last Thursday’s low and short-term resistance at 1.3743, the high of February 9.
Earlier in the day, German research institute, Ifo said its Business Climate Index rose more-than-expected in February, to hit a new all time high.
Seperate reports showed that the euro zone flash manufacturing Purchasing Managers’ Index rose to 59 from 57.3 in January, the highest reading since June 2000, while the flash Services Business Activity Index rose to 57.2 in February from 55.9 the previous month, marking the strongest reading since August 2007.
Economists were expecting the the manufacturing PMI to dip to 57.2, and the services reading to rise to 56.
Meanwhile, the euro was higher against the pound, with EUR/GBP easing up 0.14% to hit 0.8436.
Also Monday, markets in the U.S. were to remain closed for the President’s Day holiday.