Forexpros – The euro climbed against the U.S. dollar Wednesday, despite weaker than forecasted U.S. manufacturing and employment data.
EUR/USD is currently trading at the session high of 1.3185 and touched a low of 1.3027 earlier.
The pair was likely to find support at 1.2930, the low of January, 25 and technical resistance exists at 1.3213 Tuesday`s high.
The Institute for Supply Management’s U.S. manufacturing index climbed to 54.1 in January from 53.1 in December. 50 is the dividing line between economic growth and contraction.
However, the number did miss the consensus estimate of 54.5% per a Bloomberg survey.
Payroll processing firm, ADP reported that non farm private payrolls climbed to a seasonally adjusted 170,000 in January, missing expectations for an increase of 190,000.
The ADP report is widely considered a precursor to the much watched official non farm payroll data released on Friday.
Euro bullish sentiment was stroke with the Markit Economics final purchasing managers’ index climbing to 48.8 from 46.9 the previous month, surpassing the average analyst’s estimate of 48.7%.
Manufacturing also increased in China with the official purchasing managers index growing to 50.5 in January from 50.3 in December, beating the consensus forecast for a sub 50 reading.
The euro was also supported as word from the Greek debt talks indicates that progress is being made in terms of a sweetener tied to a revival in economic growth that would soften the blow of lower bond interest rates. Investors are awaiting additional details.
The euro was higher against the pound, with EUR/GBP climbing 0.23% to 0.8321.
Even the U.K. showed improvement with their manufacturing index soaring to an eight month high in January.
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