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Forex - EUR/USD steady, near 5-week lows after French, German data

Published 05/15/2013, 02:33 AM
Updated 05/15/2013, 02:34 AM
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Investing.com - The euro was steady against the U.S. dollar on Wednesday, trading near five-week lows after the release of disappointing economic growth data out of France and Germany, while markets were eyeing the release of a similar report from the entire euro zone.

EUR/USD hit 1.2899 during late Asian trade, the pair's lowest since April 4; the pair subsequently consolidated at 1.2912, easing 0.05%.

The pair was likely to find support at 1.2747, the low of April 4 and resistance at 1.3029, Tuesday's high.

Preliminary data earlier showed that Germany's gross domestic product rose less-than-expected in the first quarter, adding 0.1% after a 0.7% decline in the previous quarter. Analysts had expected the GDP to rise 0.3% in the first quarter.

Year-on-year, Germany's GDP contracted by 1.7%, disappointing expectations for a 0.2% a rise, after an increase of 0.1% in the fourth quarter.

A separate report showed that France's GDP declined 0.2% in the last quarter, compared to expectations for a 0.1% fall, after a 0.2% decline in the fourth quarter.

Meanwhile, demand for the greemback continued to be underpinned by speculation over a possible near-term exit from the Federal Reserve’s asset purchase program after recent U.S. data indicated that the economic outlook is improving.

The euro was lower against the pound with EUR/GBP slipping 0.15%, to hit 0.8483.

Later in the day, the euro zone was to release preliminary data on first quarter GDP, while the U.S. was to publish data on producer price inflation, industrial production, the capacity utilization rate and a report on manufacturing activity in New York State.


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