EUR/USD declines ahead of eurozone growth data

The eurozone's official currency declined against the dollar in forex trading today (November 14th), wobbling after Thursday's gains in anticipation of preliminary third-quarter growth data for the monetary union.

As of 07:00 GMT, EUR/USD had edged up from a session low of 1.2427 in late Asian trade to consolidate at 1.2435 - a decline of 0.33 per cent on Thursday's level.

The currency had firmed against the greenback in light of data from the US Department of Labor that showed the number of individuals filing for initial jobless benefits increased 12,000 week on week, rising from 278,000 to a seasonally adjusted 290,000.

Prior to the release of the report, the consensus estimate had been for an increase of 4,000, spurring profit-taking when it emerged that the number was higher than expected and driving EUR/USD to a session high of 1.2490 in US trade.

However, soft data out of Germany and France weighed on the euro's progress, with the former's gross domestic product growing 0.1 per cent in the third quarter after having contracted the same amount in the three months to June.

France's economy grew 0.3 per cent, exceeding expectations for a 0.1 per cent increase, but sentiment remains that the eurozone faces a prolonged period of low inflation.

Early in the European session, EUR/USD was likely to find support at 1.2357 - its lowest since November 7th - and resistance at 1.2568, which it touched last on November 5th.

The dollar has surged in recent weeks amid expectations that the Federal Reserve will hike interest rates in mid-2015 following the conclusion of its quantitative easing stimulus programme in October.

Investors are now watching for the release of data on US retail sales and consumer sentiment, due later in the day, which should shed more light on the strength of the nation's economic recovery.