Investing.com – The euro extended losses against the U.S. dollar on Wednesday, falling to a fresh daily low after official data showed that U.S. durable goods orders fell unexpectedly in June.
EUR/USD hit 1.4439 during early U.S. trade, the daily low; the pair subsequently consolidated at 1.4447, shedding 0.42%.
The pair was likely to find support at 1.4356, Tuesday’s low and resistance at 1.4577, a three-week high.
The Commerce Department said durable goods orders dropped 2.1%, led lower by a decline in orders for transportation equipment, after a 1.9% increase in May. Analysts had expected orders to rise by 0.4% in May.
Excluding transportation, orders edged up 0.1% after gaining 0.7% in May.
The euro weakened earlier, as the cost of insuring Italian and Spanish government debt against default rose, amid fears that the euro zone’s bailout fund may be insufficient to prevent sovereign debt contagion.
German Finance Minister Wolfgang Schaeuble said that Berlin was against a “blank check” for the European Financial Stability Facility to purchase bonds on the secondary market.
Schaeuble also said European governments must prevent a breakup of the euro region as well as an “uncontrolled” exit of one of its members.
The comments sparked fresh concerns that last week’s agreement on a second bailout package for Greece has not fully addressed the issues relating to the euro zone’s sovereign debt crisis.
But the single currency remained supported as talks on raising the U.S. debt ceiling remained at an impasse, adding to concerns over a possible U.S. debt default or downgrade ahead of the August 2 deadline.
The euro was also lower against the pound, with EUR/GBP shedding 0.30% to hit 0.8818.
Also Wednesday, preliminary data showed that German consumer price inflation rose slightly more-than-expected in July, as energy costs increased.
EUR/USD hit 1.4439 during early U.S. trade, the daily low; the pair subsequently consolidated at 1.4447, shedding 0.42%.
The pair was likely to find support at 1.4356, Tuesday’s low and resistance at 1.4577, a three-week high.
The Commerce Department said durable goods orders dropped 2.1%, led lower by a decline in orders for transportation equipment, after a 1.9% increase in May. Analysts had expected orders to rise by 0.4% in May.
Excluding transportation, orders edged up 0.1% after gaining 0.7% in May.
The euro weakened earlier, as the cost of insuring Italian and Spanish government debt against default rose, amid fears that the euro zone’s bailout fund may be insufficient to prevent sovereign debt contagion.
German Finance Minister Wolfgang Schaeuble said that Berlin was against a “blank check” for the European Financial Stability Facility to purchase bonds on the secondary market.
Schaeuble also said European governments must prevent a breakup of the euro region as well as an “uncontrolled” exit of one of its members.
The comments sparked fresh concerns that last week’s agreement on a second bailout package for Greece has not fully addressed the issues relating to the euro zone’s sovereign debt crisis.
But the single currency remained supported as talks on raising the U.S. debt ceiling remained at an impasse, adding to concerns over a possible U.S. debt default or downgrade ahead of the August 2 deadline.
The euro was also lower against the pound, with EUR/GBP shedding 0.30% to hit 0.8818.
Also Wednesday, preliminary data showed that German consumer price inflation rose slightly more-than-expected in July, as energy costs increased.