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Forex - EUR/GBP nears 20-month low after poor U.S. home sales data

Published 06/23/2010, 11:32 AM
EUR/GBP
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EUR/JPY
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Investing.com – The euro approached a 20-month low against the pound on Wednesday, after official data from the U.S. showed that new home sales fell more than expected in May.

EUR/GBP hit 0.8213 during European afternoon trade; it’s lowest since June 11, close to the 20-month low of 0.8210 of the same day; the pair subsequently consolidated at 0.8219 shedding 0.77%.

The pair was likely to find short-term support at 0.8210, and resistance at 0.8368, Tuesday’s high.

Earlier in the day, the U.S. Census Bureau said new home sales fell to a 300,000 unit seasonally adjusted annual rate during the month, from 446,000 in April, whose figure was revised down from 504,000.

Economists had expected a more modest decline to 450,000 in May.

The euro was also down against the yen, with EUR/JPY shedding 0.87% to hit 110.17.

Earlier Wednesday, official data showed that consumer confidence in the euro zone fell less than expected in June.

Also Wednesday, euro zone official data showed that while activity in France's services sector increased at a faster rate than forecast in June, activity in Germany’s manufacturing sector fell at a faster rate than forecast during the same month.

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