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Forex - EUR/USD edges lower after U.S. data

Published 10/25/2012, 11:08 AM
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Investing.com - The euro edged lower against the U.S. dollar on Thursday, following the release of broadly better-than-expected U.S. economic data, as uncertainty over whether Spain will request a bailout weighed on demand for the single currency.

EUR/USD hit 1.2952 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.2958, slipping 0.11%.

The pair was likely to find support at 1.2919, Wednesday’s low and resistance at 1.3074, Tuesday’s high.

In the U.S. official data showed that durable goods orders, which includes transportation items, jumped by a seasonally adjusted 9.9% in September, compared to expectations for a 7.1% gain.

Excluding volatile transportation items, durable goods orders rose by a seasonally adjusted 2.0% last month, beating expectations for a 0.8% gain.

Separately, the Labor Department said the number of people who filed for unemployment assistance in the U.S. last week fell to 369,000, from 392,000 the previous week, compared to expectations for a decrease to 370,000.

Meanwhile, a report by the National Association of Realtors showed that U.S. pending home sales rose by 0.3% in September, below expectations for a 2.1% gain.

The euro was lower against the stronger pound, with EUR/GBP dropping 0.71% to 0.8031 but remained higher against the yen, with EUR/JPY up 0.37% to 103.91.

The pound strengthened broadly after official data showed that the U.K. economy expanded by 1.00% in the three months to September, pulling out of the longest double dip recession since 1955 and outstripping expectations for a 0.6% gain.

The yen remained under broad selling pressure amid mounting speculation over the possibility of more easing by the Bank of Japan at its upcoming policy meeting on October 30.



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