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Forex - EUR/USD hits 2-week lows after U.S. data

Published 08/29/2013, 10:10 AM
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Investing.com - The euro fell to two-week lows against the dollar on Thursday after official data showed that U.S. second quarter growth was revised sharply higher, indicating that the economic recovery is on track.

EUR/USD hit 1.3234 during U.S. morning trade, the lowest since August 15; the pair subsequently consolidated at 1.3242, shedding 0.72%.

The pair was likely to find support at 1.3204, the low of August 15 and resistance at 1.3300.

The Commerce Department said gross domestic product expanded at an annual rate of 2.5% in the three months to June, above expectations for growth of 2.2% and up from a preliminary estimate of 1.7%.

In a separate report, the Department of Labor said the number of people who filed for unemployment assistance fell to the lowest level since October 2007 last week.

The number of people filing for initial jobless benefits in the week ending August 23 fell by 6,000 to a seasonally adjusted 331,000, compared to forecasts for a decline of 5,000.

The upbeat data reinforced the view that the Federal Reserve could start phasing out stimulus measures as soon as next month.

The single currency was pressured lower by speculation that Greece will require a third bailout package in 2014.

Meanwhile, markets participants remained cautious amid concerns over prospects for a U.S.-led military strike against Syria’s government, following the alleged use of chemical weapons.

The euro was also weaker against the pound, with EUR/GBP falling 0.61% to 0.8539. The single currency was slightly lower against the yen, with EUR/JPY sliding 0.11% to 130.10.



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