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Forex - EUR/USD trims losses after U.S. home sales data

Published 11/21/2011, 10:31 AM
EUR/USD
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EUR/GBP
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Investing.com - The euro trimmed losses against the U.S. dollar on Monday, after better-than-expected U.S. home sales data but the single currency remained vulnerable amid ongoing concerns over European and U.S. sovereign debt.

EUR/USD pulled back from 1.3431, the pair’s lowest since November 17 to hit 1.3474 during U.S. morning trade, still down 0.33%.

The pair was likely to find support at 1.3377, the low of October 10 and resistance at 1.3613, the high of November 18.

In a report, the National Association of Realtors said that U.S. existing home sales rose more-than-expected in October to 4.97M, from 4.90M the previous month.

Analysts had expected existing home sales to rise to 4.80M in October.

The euro came under pressure earlier as the spread between 10-year Spanish bond yields and their German counterparts widened amid uncertainty over the ability of Madrid’s newly elected government to deal with its economic problems.

Also Monday, rating’s agency Moody's said a rise in French government debt yields and weaker growth prospects could be negative for the outlook on the country's credit rating.

Meanwhile, the failure of a U.S. congressional "super committee" to agree on a package of measures to slash USD1.2 trillion off the U.S. deficit over the next 10 years weighed on risk appetite. A formal announcement was expected later in the day.

Elsewhere, the euro was sharply higher against the pound with EUR/GBP rising 0.71%, to trade at 0.8618.

European Union economic and monetary affairs commissioner Olli Rehn said earlier that Europe's sovereign debt crisis is hurting the core of the 17-country euro zone, warning there should be "no illusions" about its potential long-term impact.

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