Forex - EUR/USD hits fresh 5-week high after raft of mixed U.S. data

Published 09/15/2010, 11:47 AM
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Investing.com – The euro erased earlier losses to hit a fresh 5-week high against the U.S. dollar on Wednesday, after a raft of mixed U.S. economic data soured sentiment on the U.S. dollar.

EUR/USD hit 1.3036 during European afternoon trade, the pair’s highest since August 11; the pair subsequently consolidated at 1.3007, gaining 0.07%.

The pair is likely to find support at 1.2828, Tuesday’s low, and resistance at 1.3185, the high of August 11.

Earlier in the day, the U.S. Federal Reserve said that industrial production declined by a seasonally adjusted 0.2% in August, after falling by a revised 0.6% in July.

Analysts had expected industrial production to decline by 0.3% in August.

The report also said that the capacity utilization rate fell unexpectedly in August.

Meanwhile, separate data showed that an index of manufacturing conditions in New York State fell more-than-expected in September, while import prices increased more-than-expected in August, rising for a second consecutive month.

Meanwhile, the euro was down against the pound, with EUR/GBP shedding 0.40% to hit 0.8330.

Earlier Wednesday, official data showed that the annualized rate of consumer price inflation in the euro zone declined in line with expectations in August.

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