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Forex - EUR/USD holds moderate gains after E.Z., U.S. data

Published 12/22/2014, 10:19 AM
Euro remains moderately higher vs. dollar, just above 2-year trough
EUR/USD
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EUR/GBP
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Investing.com - The euro remained moderately higher against the U.S. dollar on Monday, holding just above a two-year trough after the release of better-than-expected euro zone consumer confidence data and a disappointing home sales report from the U.S.

EUR/USD hit 1.2272 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.2252, adding 0.20%.

The pair was likely to find support at 1.2132 and resistance at 1.2353, the high of December 18.

In a report, Eurostat said its index of consumer confidence for the euro zone improved to minus 10.9 this month from minus 11.5 in November, whose figure was revised from a previously estimated minus 11.6.

Analysts had expected the index to improve to minus 11.0 in December.

Earlier Monday, official data showed that German import prices dropped 0.8% in November, compared to expectations for a 0.5% loss, after a 0.3% downtick in October.

In the U.S., industry data showed that existing home sales dropped by 6.1% in November to 4.93 million units from a revised total of 5.25 million the previous month.

Analysts had expected existing home sales to slip 0.9% last month to 5.19 million units.

Meanwhile, the dollar continued to be underpinned after the Fed signaled last week that it was on track to raise interest rates next year but said it was taking a patient stance.

The central bank also acknowledged the improvement in the U.S. labor market and noted that the economy is making progress toward its goals in inflation and employment.

The euro was also higher against the pound, with EUR/GBP gaining 0.38% to 0.7854.

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