Forex - EUR/USD pares gains after U.S. durables data

Published 03/28/2012, 08:48 AM
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Investing.com - The euro pared gains against the U.S. dollar on Wednesday, following the release of data showing that U.S. new orders for long lasting manufactured goods rose less than expected last month.
 
EUR/USD pulled back from 1.3373, the session high, to hit 1.3326 during European afternoon trade, still up 0.10% on the day.
 
The pair was likely to find short-term support at 1.3312, the session low and resistance at 1.3384, Tuesday’s high and a one-month high.
 
The Commerce Department said durable goods orders rose 2.2% in February, partially reversing January's revised 3.6% decline, but fell short of expectations for a 3.0% increase.
 
Core durable goods orders, which exclude transportation, rose by a seasonally adjusted 1.6% in February, compared to expectations for a 1.5% gain.
 
The report came after preliminary data showing that German consumer price inflation declined to 2.3% in March, in line with expectations, after rising by 2.5% the previous month.
 
The euro remained supported ahead to a meeting of euro zone finance ministers on Friday, amid speculation that they would agree on a larger debt firewall to combat the debt crisis in the region.
 
The euro also found support earlier following upbeat comments by Italian Prime Minister Mario Monti, who said the debt crisis in the euro zone was “almost over.”
 
The euro was higher against the pound, but slipped lower against the broadly firmer yen, with EUR/GBP rising 0.42% to hit 0.8382 and EUR/JPY sliding 0.11% to hit 110.61.
 
Also Wednesday, official data confirmed that the French gross domestic product grew by 0.2% in the fourth quarter, in line with preliminary estimates. In contrast, the euro zone economy contracted by 0.3% in the last three months of 2011.

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