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Forex - EUR/USD extends losses after rise in U.S. new home sales

Published 10/27/2010, 11:31 AM
EUR/USD
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EUR/GBP
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Investing.com – The euro extended earlier losses against the U.S. dollar on Wednesday, falling to a fresh 5-day low following the release of better-than-expected U.S. data on new home sales.

EUR/USD hit 1.3759 during late European trade, the pair’s lowest since October 20; the pair subsequently consolidated at 1.3779, falling 0.57%.

The pair was likely to find short-term support at 1.3636, the low of October 5 and resistance at 1.3981, Tuesday’s high.

Earlier in the day, the Census Bureau said new home sales rose to a seasonally adjusted 307,000 units in September, after rising to 288,000 units in August. Analysts had expected the number of new home sales to rise to 300,000 units in September.

The report said that year-on-year, existing home sales rose by a seasonally adjusted 6.6% in September, up from 1.1% in August.

Meanwhile, separate data showed that U.S. core durable goods orders fell unexpectedly in September while durable goods orders rose more-than-expected.

The euro was also down against the pound, with EUR/GBP shedding 0.17% to hit 0.8731.

The dollar was also boosted following a report in the Wall Street Journal said that the Federal Reserve was likely to unveil a program of U.S. Treasury bond purchases worth a few hundred billion dollars over several months, contrary to market expectations of purchases in excess of USD 1 trillion.

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