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Forex - EUR/USD pulls back from 2-day high after U.S. data

Published 06/14/2011, 10:05 AM
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Investing.com – The euro pulled away from a two-day high against the U.S. dollar on Tuesday, after U.S. data showed that producer prices posted a large annualized gain last month, while retail sales fell less-than-expected.

EUR/USD pulled away from 1.4472, the pair’s highest since Friday, to hit 1.4437 during early U.S. trade, still up 0.16% on the day.

The pair was likely to find support at 1.4319, Monday’s low and a seven-day low and resistance at 1.4550, Friday’s high.

Earlier in the day, the U.S. Bureau of Labor Statistics said producer prices rose 0.2% in May, taking the annual inflation rate to 7.3%, more than the 6.8% forecasted increase.

Core inflation, which excludes food and energy costs, rose broadly in line with expectations in May, increasing by 0.2% after rising by 0.3% in the preceding month.

A separate report showed that U.S. retail sales posted the first drop in 11 months in May, dragged down by falling automobile sales.

The Commerce Department said retail sales slipped 0.2%, after a downwardly revised 0.3% increase in April. Analysts had expected retail sales to decline by 0.7% last month.

Excluding autos, retail sales last month climbed 0.3%, versus expectations for a 0.1% gain.

The euro inched higher against the pound, with EUR/GBP easing up 0.03% to hit 0.8806.

Also Tuesday, European Central Bank Governing Council member Mario Draghi said that the bank opposed any non-voluntary restructuring of Greek debt.

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