NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

Forex - EUR/USD remains higher as E.Z. data still supports

Published 06/03/2014, 10:07 AM
Euro holds gains vs. dollar after U.S. data
EUR/USD
-
EUR/GBP
-

Investing.com - The euro remained higher against the U.S. dollar on Tuesday, after U.S. factory orders data came out higher than expected, as an upbeat euro zone unemployment report continued to support the single currency.

EUR/USD hit 1.3648 during U.S. morning trade, the pair's highest since May 30; the pair subsequently consolidated at 1.3628, rising 0.23%.

The pair was likely to find support at 1.3586, the low of May 29 and resistance at 1.3668, the high of May 27.

Official data showed that U.S. factory orders rose 0.7% in April, beating expectations for a 0.5% gain, after an upwardly revised 1.5% increase in March.

The single currency strengthened earlier, after data showed that the unemployment rate in the euro zone ticked down to 11.7% in April, from 11.8% the previous month, confounding expectations for the rate to remain unchanged.

Separately, Eurostat said consumer price inflation in the euro zone increased by 0.5% last month, down from 0.7% in April and missing expectations for a reading of 0.7%. The rate stands well below the European Central Bank's target of near but just under 2%.

Data also showed that the number of unemployed people in Spain dropped by 111,900 last month, compared to expectations for a 112,300 decline, after a 111,600 fall in April.

But sentiment on the euro vulnerable after data last week showing that the annual rate of inflation in Italy and Spain slowed in May added to expectations that the ECB will take steps to tackle low consumer price growth.

The euro was higher against the pound, with EUR/GBP adding 0.23% to 0.8138.

Also Tuesday, Markit research group said the U.K. construction purchasing managers' index ticked down to 60.0 in May, from a reading of 60.8 the previous month. Analysts had expected the index to remain unchanged last month.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.