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EUR/USD falls on profit taking, global stock-market selloff

Published 01/24/2014, 12:11 PM
Updated 01/24/2014, 12:12 PM

Investing.com - The dollar rose against the euro on Friday after investors locked gains from the single currency's recent gains and sold it for profits, while falling stock prices sent investors snapping up safe-haven greenback positions elsewhere.

In U.S. trading, EUR/USD was trading at 1.3685, down 0.08%, up from a session low of 1.3663 and off a high of 1.3738.

The pair was likely to find support at 1.3529, Thursday's low, and resistance at 1.3738, the earlier high.

Solid economic indicators out of Europe recently sent the single currency rising to levels ripe for profit taking.

The euro zone’s composite output index rose to a 31-month high of 53.2 in January, up from a final reading of 52.1 in December, according to industry data released Thursday, which bolstered the euro.

Meanwhile, falling stock prices, the product of an emerging-market equities and currencies selloff, sent investors snapping up nicely-priced greenback and yen positions.

Still, the greenback's gains were muted.

On Thursday in the U.S., the Labor Department reported earlier that weekly initial jobless claims rose in line with expectations last week, but the number of continuing jobless claims remained above the 3 million mark for a second successive week.

The number of individuals filing for unemployment assistance in the U.S. last week rose to 326,000, up from the previous week’s revised total of 325,000 and in line with expectations.

The number of people filing continuing unemployment claims rose to 3.056 million up from 3.022 million in the week to Jan. 11. Analysts had expected continuing claims to fall to 2.930 million.

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Elsewhere, U.K.-based Markit Economics reported that U.S. factory output fell to a three-month low in January, mainly due to the impacts that wintry weather had on commerce.

The U.S. manufacturing PMI declined to 53.7 this month from a final reading of 55.0 in December. Analysts had expected the index to hold steady.

Also Thursday, the National Association of Realtors reported that U.S. existing home sales came in at 4.87 million units last month from 4.82 million in November, missing expectations for an increase to 4.94 million.

Elsewhere, the euro was up against the pound, with EUR/GBP gaining 0.77% to 0.8295, and down against the yen, with EUR/JPY trading up 1.09% at 139.92.

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