EUR/USD traded with stability close to seven-week highs

The euro was trading steadily against the US dollar on Friday in proximity to seven-week highs, as German trade balance data, released yesterday, continued to support the single currency.

EUR/USD reached its highest point today at 1.3389 at 6:17 GMT, after which consolidation followed at 1.3386. Support for the pair was to be received at August 8th low, 1.3321, while resistance was to be encountered at June 19th high, 1.3415.

Yesterday the common currency was strongly supported after an official report said that German trade balance registered a wider surplus than projected in the month of June, amounting to 16.9 billion EUR, compared to the expected 15.0 billion EUR. Surplus, recorded during the preceding month was revised up to 13.6 billion EUR from 13.1 billion EUR previously. The seasonally adjusted trade balance also recorded a larger surplus in June, 15.7 billion EUR compared to expectations of a figure of 15.2 billion EUR, following the revised up surplus of 14.6 billion EUR during May.

Later in the day, France was expected to report on activity in its industrial production and manufacturing production, while Italy was to release data, regarding the final reading of consumer price inflation and trade balance.

Meanwhile, US dollar came under pressure, as recent economic data from the United States fueled the uncertainty over the future of Federal Reserve’s monthly asset purchases. Chicago Federal Reserve Bank Chairman Charles Evans said that he would not rule out the withdrawal of central bank’s stimulus measures at the bank’s meeting in September.

Elsewhere, the euro was slightly losing positions against the British pound, with EUR/GBP cross dipping 0.05% to trade at 0.8609 at 6:34 GMT. EUR/JPY pair was also on negative territory, as the pair was losing 0.12% to trade at 129.26 at 6:34 GMT.