2024.01.0311:41:00UTC+00Euro Hits Fresh 2-week Low Against U.S. Dollar

The euro registered losses against the U.S. dollar during the European session on Wednesday, after a data showed that German unemployment rate increased slightly at the end of the year.

Data from the Federal Labor Agency showed that the jobless rate edged up to 5.9 percent in December from revised 5.8 percent in the previous month.

The rate was forecast to remain unchanged at November's initially estimated level of 5.9 percent.

Unemployment rose only 5,000 in December compared to an increase of 21,000 in November and 29,000 in October, the ministry said. Economists had forecast a monthly rise of 20,000 for December.

According to the labor force survey results, published by Destatis, the jobless rate remained unchanged at adjusted 3.1 percent in November. The number of people out of work increased 5,000 from the previous month to 1.36 million in November.

The currency was further weighed by a stronger dollar ahead of key U.S. labor market data and the release of FOMC meeting minutes this week.

The euro touched 1.0920 against the greenback, its lowest level since December 19. The currency may possibly face support around the 1.06 level.

The euro reached as low as 0.8647 against the pound. The currency is likely to locate support around the 0.84 level.

The euro was trading at 1.4574 against the loonie and 1.7485 against the kiwi, down from an early high of 1.4611 and a 5-day high of 1.7530, respectively. The currency is poised to challenge support around 1.42 against the loonie and 1.70 against the kiwi.

In contrast, the euro climbed against the yen and the franc and was trading at 155.97 and 0.9333, respectively. The next possible resistance for the currency is seen around 158.00 against the yen and 0.96 against the franc.

The euro remained firm against the aussie, touching a 5-day high of 1.6231. On the upside, 1.65 is possibly seen as its next resistance level.

Looking ahead, ISM manufacturing PMI for December will be released in the New York session.

The Fed minutes from the December 12-13 meeting will be published at 2 pm ET.