Forex - EUR/USD close to 2-week low as Spain budget eyed

Published 09/27/2012, 11:15 AM
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Investing.com - The euro was hovering close to a two-week low against the U.S. dollar on Thursday, after a flurry of mixed U.S. data painted an uneven picture of the country’s economy and investors awaited Spain’s budget statement.

EUR/USD hit 1.2845 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.2865, inching down 0.07%.

The pair was likely to find support at 1.2753, the low of September 11 and resistance at 1.2912, the session high.

The euro remained under pressure as market participants awaited a press conference to announce the details of Spain’s draft budget statement for 2013, amid ongoing speculation over whether Madrid will request a sovereign bailout.

In the U.S, official data showed that the economy expanded 1.3% in the second quarter, down from a preliminary estimate of 1.7%. Economists had expected the rate of growth to remain unchanged.

A separate report showed that U.S. durable goods orders fell 13.2% in August, the steepest decline since January 2009, compared to expectations for a 5.0% decline.

Meanwhile, a report by the Department of Labor showed that the number of people who filed for unemployment assistance in the U.S. last week fell by 26,000 to 359,000, compared to expectations for a decrease to 378,000.

A report released by the National Association of Realtors showed that U.S. pending home sales dropped 2.6% in August, compared to expectations for a 0.7% drop.

The euro was lower against the pound and the yen, with EUR/GBP down 0.32% to 0.7939 and EUR/JPY losing 0.25% to trade at 99.82.

Earlier in the day, Italy saw borrowing costs ease at an auction of government bonds, with the yield on 10-year bonds falling to 5.24% from 5.82% and the yield on five-year bonds falling to 4.09%, down from 4.73%.


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