The EUR /USD pair declined on Thursday as dollar was broadly steadier after the latest data on domestic jobless claims and producer prices reinforced the view of diminishing labor slack, and inflation accelerating in the…
The EUR /USD pair declined on Thursday as dollar was broadly steadier after the latest data on domestic jobless claims and producer prices reinforced the view of diminishing labor slack, and inflation accelerating in the second quarter.
U.S. producer prices rebounded more than expected in April amid rising costs for goods and services, leading to the biggest annual gain in five years.
The Labor Department said on Thursday its producer price index for final demand increased 0.5 percent last month after slipping 0.1 percent in March. The PPI increased 2.5 percent in the 12 months through April, the biggest gain since February 2012, after advancing 2.3 percent in March.
The ongoing weakness is set to continue for this pair as the resistance level at 1.0915 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
To the upside, the immediate resistance can be seen at 1.0874, a break above this level would expose the pair to next resistance level at 1.0915.
To the downside, immediate support can be seen at 1.0830, a break below at this level will open the door towards next level at 1.0800.
