Forex - EUR/USD erases losses from weak U.S. home sales, Spanish jitters

Published 09/26/2012, 08:09 PM
Updated 09/26/2012, 08:10 PM
EUR/USD
-
EUR/GBP
-
EUR/JPY
-
orexpros - The euro rose against the dollar on Thursday, erasing losses sustained earlier after new home sales in the U.S. came in short of expectations, sending investors running to the liquid dollar in a risk-off trading session that extended into early Asian trading.

Spanish economic concerns pushed the pair down as well before bottom fishers brought it up in very choppy trading.

In Asian trading on Thursday, EUR/USD was trading up 0.03% at 1.2878, up from a session low of 1.2877, and off from a high of 1.2879.

The pair was likely to test support at 1.2835, Wednesday's low, and resistance at 1.2913, Wednesday's high.

In the U.S. earlier, the Census Bureau reported that new home sales fell to a seasonally adjusted annual rate of 373,000 in August from 374,000 in July, whose figure was revised up from 372,000.

Analysts had expected new home sales to rise to 380,000 in August.

The news sent investors selling stocks and higher-yielding currencies and stocking up on dollar positions.

Meanwhile in Europe, protests broke out in the streets of Madrid on Wednesday before the Spanish government's plans to unveil new austerity measures to accompany the country's 2013 budget later Thursday.

Yields on Spain's benchmark 10-year government bond topped 6 percent on concerns the country will run into problems financing itself.

Spain has yet to request a bailout, though the country has said it will meet its budgetary goals.

The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP trading down 0.04% at 0.7961, and EUR/JPY trading down 0.05% at 100.03.

In the eurozone on Thursday, official data on M3 money supply will publish, while Germany will produce government data on employment change.

The U.S. is to publish government data on durable goods orders, a leading indicator of production, as well as a weekly report on unemployment claims and revised data on second quarter economic growth.

The country will also release industry data on pending homes sales, a leading indicator of economic health.









Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.