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Forex - EUR/USD pushes lower after U.S. data, eyes on Fed

Published 07/31/2013, 10:03 AM
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Investing.com - The euro pushed lower against the U.S. dollar on Wednesday, after the release of positive U.S. data lent support to the greenback ahead of the Federal Reserve's highly anticipated policy statement.

EUR/USD hit 1.3214 during U.S. morning trade, the pair's lowest since July 25; the pair subsequently consolidated at 1.3222, shedding 0.29%.

The pair was likely to find support at 1.3163, the low of July 23 and resistance at 1.3301. Tuesday's high.

The Bureau of Economic Analysis said that U.S. gross domestic product grew at a seasonally adjusted annual rate of 1.7% in the three months to June, beating expectations for growth of 1%.

The report showed personal consumption grew 1.8% in the second quarter, above expectations for 1.6%. Consumer spending typically accounts for nearly 70% of U.S. economic growth.

Separately, payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 200,000 in July, above expectations for an increase of 180,000.

Data also showed that the Chicago purchasing managers' index rose less-than-expected in July, advancing to 52.3 from 51.6 the previous month. Analysts had expected the index to rise to 54.0 this month.

In the euro zone, preliminary data showed that consumer price inflation remained unchanged at an annualized rate of 1.6% in July, in line with expectations.

The unemployment rate in the single currency bloc held steady at 12.1% last month, confounding expectations for a rise to 12.2%.

Earlier Wednesday, official data showed that the number of unemployed people in Germany fell by 7,000 in June, confounding expectations for a 4,000 fall.

Germany's unemployment rate remained unchanged at 6.8% in June, in line with expectations.

A separate report showed that German retail sales declined 1.5% in June, disappointing expectations for a 0.4% rise, after an increase of 0.7% the previous month.

The euro was higher against the pound with EUR/GBP gaining 0.37%, to hit 0.8736.

Market participants were also eyeing the European Central Bank's monetary policy statement on Thursday.


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