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Forex - EUR/JPY rebounds from 10-week low as debt fears ease

Published 11/24/2010, 09:56 AM
EUR/USD
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Investing.com – The euro rebounded from a 10-week low against the yen on Wednesday, as economic data painted a mixed picture of the U.S. economy and after Ireland unveiled its austerity plan.

EUR/USD clawed up from 110.30, the pair’s lowest since September 15 to hit 111.55 during European afternoon trade, gaining 0.35%.

The pair was likely to find support at 110.30 and resistance at 112.77, the high of November 17.

Earlier in the day, the U.S. Census Bureau said core durable goods orders fell unexpectedly in October, dropping 2.7% after rising by a revised 1.3% in September. Analysts had expected core durable goods orders to rise by 0.4% in October.

Durable goods orders, which include transportation items, tumbled more-than-expected in October, falling 3.3% posting the biggest fall since January 2009 after rising by a revised 5.0% in September. Analysts had expected durable goods orders to decline by 0.3% in October.

Separately, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell more-than-expected, declining to the lowest level since July 2008.

Meanwhile, Irelands government said that it intended to save EUR15 billion between 2011 and 2014 – or about 4% of annual economic output – with EUR10 billion in public spending cuts and EUR5 billion in new taxes and revenues.

The plan sets the stage for a bailout by the European Union and the International Monetary Fund, less than seven months after Greece required similar treatment.

The euro was also up against the U.S. dollar with EUR/USD gaining 0.21% to hit 1.3398.

Later in the day, the U.S. was to release official data on new home sales as well as revised data on consumer sentiment and inflation expectations.

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