Investing.com - The euro edged higher against the U.S. dollar on Thursday, as downbeat U.S. economic reports weighed on demand for the greenback, while investors remained cautious ahead of Spain's highly anticipated budget announcement later in the day.
EUR/USD hit 1.2900 during European afternoon trade, the daily high; the pair subsequently consolidated at 1.2885, edging up 0.09%.
The pair was likely to find support at 1.2816, the low of September 12 and resistance at 1.2971, the high of September 25.
Official data showed that the U.S. economy grew less than previously expected during the second quarter of 2012, as consumer spending figures were revised lower.
Gross domestic product increased at a seasonally adjusted annual rate of 1.3% during the second quarter, down from a previous estimate of 1.7%. Analysts had expected the U.S. economy to grow at a rate of 1.7%.
A separate report showed that total durable goods orders sank by a seasonally adjusted 13.2% in August, compared to expectations for a 5.0% decline, after climbing at a revised rate of 3.3% in July.
Core durable goods orders, which exclude volatile transportation items, fell by a seasonally adjusted 1.6% in August, defying expectations for a 0.3% gain.
In addition, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending September 22 fell by 26,000 to a seasonally adjusted 359,000, compared to expectations for a decrease of 7,000 to 378,000.
The previous week’s figure was revised up to 385,000 from a previously reported 382,000.
Meanwhile, investors remained cautious as Spain’s government was due to unveil its draft budget statement for 2013, amid ongoing speculation over whether Madrid will seek a full-scale sovereign bailout, which would trigger the European Central Bank’s bond buying program.
Italy saw borrowing costs ease at an auction of government bonds earlier, 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%.
Elsewhere, the euro was lower against the pound with EUR/GBP shedding 0.32%, to hit 0.7938.
Also Thursday, the Office for National Statistics said U.K. GDP contracted by 0.4% in the three months to June, up from the preliminary estimate of a 0.5% decline.
The annualized rate of decline remained unrevised 0.5% in the second quarter, in line with expectations.
Later in the day, the U.S. was to publish data on pending home sales.
EUR/USD hit 1.2900 during European afternoon trade, the daily high; the pair subsequently consolidated at 1.2885, edging up 0.09%.
The pair was likely to find support at 1.2816, the low of September 12 and resistance at 1.2971, the high of September 25.
Official data showed that the U.S. economy grew less than previously expected during the second quarter of 2012, as consumer spending figures were revised lower.
Gross domestic product increased at a seasonally adjusted annual rate of 1.3% during the second quarter, down from a previous estimate of 1.7%. Analysts had expected the U.S. economy to grow at a rate of 1.7%.
A separate report showed that total durable goods orders sank by a seasonally adjusted 13.2% in August, compared to expectations for a 5.0% decline, after climbing at a revised rate of 3.3% in July.
Core durable goods orders, which exclude volatile transportation items, fell by a seasonally adjusted 1.6% in August, defying expectations for a 0.3% gain.
In addition, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending September 22 fell by 26,000 to a seasonally adjusted 359,000, compared to expectations for a decrease of 7,000 to 378,000.
The previous week’s figure was revised up to 385,000 from a previously reported 382,000.
Meanwhile, investors remained cautious as Spain’s government was due to unveil its draft budget statement for 2013, amid ongoing speculation over whether Madrid will seek a full-scale sovereign bailout, which would trigger the European Central Bank’s bond buying program.
Italy saw borrowing costs ease at an auction of government bonds earlier, 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%.
Elsewhere, the euro was lower against the pound with EUR/GBP shedding 0.32%, to hit 0.7938.
Also Thursday, the Office for National Statistics said U.K. GDP contracted by 0.4% in the three months to June, up from the preliminary estimate of a 0.5% decline.
The annualized rate of decline remained unrevised 0.5% in the second quarter, in line with expectations.
Later in the day, the U.S. was to publish data on pending home sales.