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Forex - EUR/USD hits 2-day high as U.S. manufacturing data eyed

Published 08/02/2010, 08:44 AM
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Investing.com – The euro erased early losses against the U.S. dollar on Monday, rising to hit a fresh 2-day high, ahead of the release of key U.S. data on manufacturing activity.

EUR/USD hit 1.3096 during European afternoon trade, the pair's highest since July 29; the pair subsequently consolidated at 1.3093, gaining 0.33%.

The pair was likely to find support at 1.2966, the low of July 28 and resistance at 1.3213, the high of May 4.

Later in the day, the U.S. was set to release key data on manufacturing activity, which was widely expected to show a decline in the sector in July, further adding to signs of a slowdown in the rate of U.S. economic growth.

Markets were also looking to a speech by U.S. Federal Reserve Chairman Ben Bernanke, on the difficulties currently facing the U.S. economy, later in the day.

Meanwhile, the euro was down against the pound, with EUR/GBP shedding 0.71% to hit 0.8258.

Earlier Monday, official data showed that manufacturing activity in the euro zone increased in July, as German factories preformed strongly.

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