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Forex - EUR/USD hits 2-day high after worse-than-expected U.S. data

Published 07/13/2010, 10:30 AM
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Investing.com – The euro rose to hit a 2-day high against the U.S. dollar on Tuesday, after the U.S. posted a larger-than-expected trade deficit.

EUR/USD hit 1.267 during European afternoon trade, the pair's highest since July 9, gaining 0.58% after clawing back up from a daily low of 1.2525.

The pair was likely to find support at 1.2479, the low of July 6, and resistance at 1.2802, the high of May 11.

Earlier Tuesday, official data showed that the U.S. posted a larger than expected trade deficit in May, as imports from China outstripped exports.

In a report, the U.S. Bureau of Economic Analysis said the trade balance for May showed a deficit of USD 42.3 billion, after posting a deficit of USD 40.3 billion in April.

Economists had expected the deficit to contract to USD 39.3 billion in May.

Meanwhile, the euro was down against the pound, with EUR/GBP shedding 0.26% to hit 0.8358.

Earlier in the day, Greece's Public Debt Management Agency sold EUR 1.625 billion of 6-month Treasury bills, its first debt auction since receiving an EU/IMF emergency loan package in May, easing fears over the country's ability to borrow money on the financial markets.

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