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Forex - EUR/USD erases gains, hits 1-month low after U.S. data

Published 02/27/2015, 10:13 AM
Euro pulls away from session highs vs. dollar after U.S. reports
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Investing.com - The euro erased gains against the U.S. dollar on Friday, to hit a one-month low after mixed U.S. economic reports lent some support to the greenback.

EUR/USD pulled away from 1.1245, the session high, to hit 1.1189 during U.S. morning trade, easing 0.08%.

The pair was likely to find support at 1.1097, the low of January 26 and resistance at 1.1380, Thursday's high.

In a revised report, the University of Michigan said its consumer sentiment index rose to 95.4 this month from 93.6 in January, beating expectations for an increase to 94.0.

The UoM also said that its inflation expectations for the next 12 months remained unchanged at 2.8% in February.

Separately, the National Association of Realtors said that U.S. pending home sales rose 1.7% in January, confounding expectations for an increase of 2.0%. December's figure was revised to a 1.5% decline from a previously estimated 3.7% drop.

Data also showed that the Chicago purchasing managers' index fell to five-and-a-half year low of 45.8 this month from a reading of 59.4 in January. Analysts had expected the index to tick down to 58.0 in February.

The reports came shortly after the Bureau of Economic Anaysis said that the U.S. gross domestic product expanded by 2.2% in the fourth quarter of 2014, below initial estimates for a growth rate of 2.6% but above expectations for 2.1%.

In the euro zone, preliminary data showed that German consumer prices rose 0.9% this month, exceeding expectations for a 0.7% gain, after a 1.1% decline in January.

Data also showed that French consumer spending rose 0.6% last month, confounding expectations for a 0.5% fall. December's figure was revised to a 1.6% increase from a previously estimated 1.5% gain.

The euro was steady against the pound, with EUR/GBP at 0.7263.

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