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Forex - EUR/USD eases up ahead of key euro zone data

Published 09/02/2010, 02:32 AM
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EUR/GBP
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Investing.com – The euro eased up against the U.S. dollar on Thursday, as investors awaited the release of key euro zone data on economic growth, while the European Central Bank was to announce its benchmark interest rate decision.

EUR/USD hit 1.2821 during late Asian trade, a daily high; the pair subsequently consolidated at 1.2818, gaining 0.07%.

The pair is likely to find support at 1.2625, the low of August 31, and resistance at 1.2921, the high of August 18.

On Wednesday, industry data showed that manufacturing activity in the U.S. increased unexpectedly in August, as the U.S. Institute for Supply Management said its index of purchasing managers rose to 56.3 in August, after falling to 55.5 in July.

Analysts had expected the index of purchasing managers to fall to 53.0 in August.

On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.

The report also showed that the ISM index of manufacturing prices rose to 61.5 in August, after rising to 57.5 in July.

The euro was also up against the pound, with EUR/GBP gaining 0.30% to hit 0.8313.

Later in the day, the European Central Bank was to announce its decision on the euro zone’s minimum bid rate, followed by a closely watched press conference.

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