Investing.com – The euro erased gains against the U.S. dollar on Wednesday, falling to a three-day low as investors awaited a statement from European Union leaders on a plan to contain the deepening debt crisis in the euro zone.
EUR/USD hit 1.3800 during U.S. morning trade, the pair’s lowest since October 21; the pair subsequently consolidated at 1.3823, falling 0.60%.
The pair was likely to find support at 1.3655, the low of October 20 and resistance at 1.3975, the day’s high and a seven-week high.
Investors were expecting EU leaders to reach agreement on a comprehensive plan to tackle the debt crisis in the euro zone, including measures to recapitalize banks, enhance the region’s bailout fund, the European Financial Stability Facility and restructure Greek debt.
Ahead of the summit, Germany’s parliament approved a controversial bill to increase the firepower of the EFSF.
But expectations for an agreement were tempered after Bloomberg reported that talks between EU officials and banks over Greek bonds were deadlocked, citing an unidentified EU official.
In the U.S., official data showed that orders for long lasting manufactured goods fell more-than-expected in September, declining for the second successive month.
The Commerce Department said durable goods orders declined by a seasonally adjusted 0.8%, after falling by 0.1% in August and surpassing expectations for a 0.7% decline.
But core durable goods orders, which excludes transportation items, jumped by a seasonally adjusted 1.7% in September, blowing past expectations for a 0.5% increase.
Meanwhile, the euro was fractionally lower against the pound, with EUR/GBP dipping 0.04% to hit 0.8688.
Also Wednesday, the U.S. Commerce Department said new home sales rose by 5.7% to a seasonally adjusted 313,000 units in September, outstripping expectations for a 1.7% increase.
EUR/USD hit 1.3800 during U.S. morning trade, the pair’s lowest since October 21; the pair subsequently consolidated at 1.3823, falling 0.60%.
The pair was likely to find support at 1.3655, the low of October 20 and resistance at 1.3975, the day’s high and a seven-week high.
Investors were expecting EU leaders to reach agreement on a comprehensive plan to tackle the debt crisis in the euro zone, including measures to recapitalize banks, enhance the region’s bailout fund, the European Financial Stability Facility and restructure Greek debt.
Ahead of the summit, Germany’s parliament approved a controversial bill to increase the firepower of the EFSF.
But expectations for an agreement were tempered after Bloomberg reported that talks between EU officials and banks over Greek bonds were deadlocked, citing an unidentified EU official.
In the U.S., official data showed that orders for long lasting manufactured goods fell more-than-expected in September, declining for the second successive month.
The Commerce Department said durable goods orders declined by a seasonally adjusted 0.8%, after falling by 0.1% in August and surpassing expectations for a 0.7% decline.
But core durable goods orders, which excludes transportation items, jumped by a seasonally adjusted 1.7% in September, blowing past expectations for a 0.5% increase.
Meanwhile, the euro was fractionally lower against the pound, with EUR/GBP dipping 0.04% to hit 0.8688.
Also Wednesday, the U.S. Commerce Department said new home sales rose by 5.7% to a seasonally adjusted 313,000 units in September, outstripping expectations for a 1.7% increase.