Forexpros – The euro trimmed gains against the U.S. dollar on Thursday, to re-approach an almost two-year low after a flurry of weak U.S. data sparked fresh concerns over the outlook for global growth.
EUR/USD pulled back from 1.2427, the session high, to hit 1.2379 during U.S. morning trade, up just 0.11% on the day.
The pair was likely to find near-term support at 1.2347, the session low and a 22-month low and resistance at 1.2427.
The dollar strengthened against the euro after revised data showed that the U.S. economy grew at a slower rate than initially estimated during the first three months of 2012, with first quarter gross domestic product expanding by 1.9%, in line with expectations, down from an initial estimate of 2.2%.
Meanwhile, the Department of Labor said the number of people who filed for unemployment assistance in the U.S. last week rose to 383,000, defying expectations for a decline of 3,000 to 370,000.
A separate report showed that the U.S. private sector added 133,000 jobs in May, missing expectations for an increase of 148,000.
In addition, data showed that manufacturing activity in the Chicago area slowed significantly more-than-expected in May, falling to the lowest level since September 2009.
Market sentiment remained somewhat supported by expectations that Ireland would pass a vote for the European Union’s fiscal treaty in a referendum on Thursday.
Elsewhere, the yield on Spanish 10-year bonds eased back to 6.51%, after climbing to a euro-era high of 6.7% on Wednesday as the lack of a convincing plan to recapitalize stricken lender Bankia fuelled fears that Madrid will be forced to seek an international bailout.
The euro added to gains against the pound, with EUR/GBP gaining 0.33% to hit 0.8016 but slumped to a four-and-a-half month low against the safe haven yen, with EUR/JPY dropping 0.67% to hit 97.12.
Also Thursday, preliminary data showed that consumer price inflation in the euro zone eased to 2.4% in May, which could allow the European Central Bank leeway to cut rates in the coming months.
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