Investing.com - The euro erased losses against the dollar on Thursday, rebounding slightly after falling on news that the U.S. gross domestic product rose a revised 1.7% in the second quarter, in line with market expectations.
More solid housing data published as well, which helped quash expectations the Fed will stimulate the U.S. economy with dollar-weakening easing tools.
In Asian trading on Thursday, EUR/USD was trading up 0.02% at 1.2533, up from a low of 1.2530 and off from a high of 1.2534.
The pair was likely to find support at 1.2466, Tuesday’s low, and resistance at 1.2576, Tuesday's high.
The U.S. government revised its second-quarter growth rate up two percentage points to 1.7% from 1.5%, which watered down talk the Federal Reserve will roll out a new round of quantitative easing.
Under quantitative easing, the Fed buys assets from banks such as Treasury holdings or mortgage-backed securities, pumping the economy full of fresh liquidity to drive down borrowing costs and spur recovery, weakening the dollar in the process.
Housing data has surprised on the upside as well, further convincing markets that the Fed may decide the economy can stand on its own two feet.
The National Association of Realtors said its index of pending home sales index rose 2.4% in July, far outpacing expectations for a 1.0% increase.
Year-on-year, pending home sales rose 15.0% in July, beating out market calls for an 11.1% increase, after rising by 8.4% in June.
The data came a day in the footsteps of bullish home pricing data.
The Standard & Poor's/Case-Shiller home price index released Tuesday showed a gain of 0.5% from June 2011, the first annual increase since 2010.
Analysts were expecting the figure to contract 0.1%.
The euro saw support, however, amid ongoing hopes the European Central Bank and other entities will craft a bond-buying program to lower borrowing costs in countries like Spain and Italy, though obstacles still remain, namely opposition among German policymakers.
The euro, meanwhile, was up against the pound and up against the yen, with EUR/GBP up 0.04% at 0.7917, and EUR/JPY trading up 0.02% at 98.64.
Investors are keeping an eye ahead for Friday, when the Federal Reserve begins its annual symposium at Jackson Hole, Wyoming.
Fed Chairman Ben Bernanke has used the event to announce policy actions in the past, mo9st notably the Fed's second round of quantitative easing.
More solid housing data published as well, which helped quash expectations the Fed will stimulate the U.S. economy with dollar-weakening easing tools.
In Asian trading on Thursday, EUR/USD was trading up 0.02% at 1.2533, up from a low of 1.2530 and off from a high of 1.2534.
The pair was likely to find support at 1.2466, Tuesday’s low, and resistance at 1.2576, Tuesday's high.
The U.S. government revised its second-quarter growth rate up two percentage points to 1.7% from 1.5%, which watered down talk the Federal Reserve will roll out a new round of quantitative easing.
Under quantitative easing, the Fed buys assets from banks such as Treasury holdings or mortgage-backed securities, pumping the economy full of fresh liquidity to drive down borrowing costs and spur recovery, weakening the dollar in the process.
Housing data has surprised on the upside as well, further convincing markets that the Fed may decide the economy can stand on its own two feet.
The National Association of Realtors said its index of pending home sales index rose 2.4% in July, far outpacing expectations for a 1.0% increase.
Year-on-year, pending home sales rose 15.0% in July, beating out market calls for an 11.1% increase, after rising by 8.4% in June.
The data came a day in the footsteps of bullish home pricing data.
The Standard & Poor's/Case-Shiller home price index released Tuesday showed a gain of 0.5% from June 2011, the first annual increase since 2010.
Analysts were expecting the figure to contract 0.1%.
The euro saw support, however, amid ongoing hopes the European Central Bank and other entities will craft a bond-buying program to lower borrowing costs in countries like Spain and Italy, though obstacles still remain, namely opposition among German policymakers.
The euro, meanwhile, was up against the pound and up against the yen, with EUR/GBP up 0.04% at 0.7917, and EUR/JPY trading up 0.02% at 98.64.
Investors are keeping an eye ahead for Friday, when the Federal Reserve begins its annual symposium at Jackson Hole, Wyoming.
Fed Chairman Ben Bernanke has used the event to announce policy actions in the past, mo9st notably the Fed's second round of quantitative easing.