Investing.com – The euro extended earlier losses against the U.S. dollar on Tuesday, plunging to a 4-day low after official data showed that the U.S. economy grew at a faster rate than earlier estimated during the third quarter.
EUR/USD hit 1.3459 during European afternoon trade, the pair’s lowest since November 16; the pair subsequently consolidated at 1.3465, plunging 1.20%.
The pair was likely to find support at 1.3285, the low of September 24 and resistance at 1.3785, Monday’s high.
Earlier in the day, preliminary data released by the Bureau of Economic Analysis said gross domestic product increased at a seasonally adjusted annual rate of 2.5% during the third quarter, up from an advanced estimate of 2.0%. Analysts had expected the second estimate of U.S. GDP to reach 2.4% in the third quarter.
The faster-than-expected growth came as exports and consumer and government spending were stronger than initially thought.
The euro was also sharply lower against the pound, with EUR/GBP plunging 0.84% to hit 0.8467.
Earlier in the day, German Chancellor Angela Merkel said Ireland's crisis was different to Greece's but just as worrying and the single currency was in an "exceptionally serious" situation.
Political turmoil in Ireland has stoked fears that the crisis would spread to other indebted euro zone nations, such as Spain or Portugal.
EUR/USD hit 1.3459 during European afternoon trade, the pair’s lowest since November 16; the pair subsequently consolidated at 1.3465, plunging 1.20%.
The pair was likely to find support at 1.3285, the low of September 24 and resistance at 1.3785, Monday’s high.
Earlier in the day, preliminary data released by the Bureau of Economic Analysis said gross domestic product increased at a seasonally adjusted annual rate of 2.5% during the third quarter, up from an advanced estimate of 2.0%. Analysts had expected the second estimate of U.S. GDP to reach 2.4% in the third quarter.
The faster-than-expected growth came as exports and consumer and government spending were stronger than initially thought.
The euro was also sharply lower against the pound, with EUR/GBP plunging 0.84% to hit 0.8467.
Earlier in the day, German Chancellor Angela Merkel said Ireland's crisis was different to Greece's but just as worrying and the single currency was in an "exceptionally serious" situation.
Political turmoil in Ireland has stoked fears that the crisis would spread to other indebted euro zone nations, such as Spain or Portugal.