Investing.com - The euro trimmed losses against the U.S. dollar on Thursday, after the release of downbeat U.S. pending home sales data lessened expectations for a near-term end to the Federal Reserve's stimulus program, weighing on the greenback.
EUR/USD hit pulled away from 1.3485, the session low, to hit 1.3503 during U.S. morning trade, still down 0.16%.
The pair was likely to find support at 1.3338, the low of September 18 and resistance at 1.3568, the high of September 19 and a seven-month high.
Industry data showed that U.S. pending home sales dropped 1.6% in August, more than the expected 1% decline, following a downwardly revised 1.4% fall the previous month.
Earlier Thursday, official data showed that the U.S. economy expanded by 2.5% in the second quarter, confounding expectations for a 2.6% expansion.
In addition, the U.S. Department of Labor said that the number of people who filed for unemployment assistance in the U.S. in the week ending September 20 fell by 5,000 to a seasonally adjusted 305,000, from a downwardly revised 310,000 the previous week.
The data came after a recent string of economic reports underlined concerns over the outlook for the U.S. economic recovery. Last week, the Fed said it wanted to see more evidence of a sustained economic recovery before it reduced stimulus.
Separately, U.S. budget concerns weighed on market sentiment as Republican leaders in the U.S. House of Representatives notified members that a vote on raison the debt limit could come as early as Friday.
The U.S. Congress is struggling to pass a spending bill to keep the government funded beyond October 1.
The euro was higher against the pound with EUR/GBP edging up 0.14%, to hit 0.8422.
Also Thursday, official data showed that U.K. GDP expanded by 0.7% in the second quarter, in line with market expectations.
On a yearly basis, U.K. GDP rose 1.3% in the three months to June, compared to expectations for a 1.5% increase.
A separate report showed that the U.K. current account deficit narrowed less-than-expected in the last quarter, improving to GBP13 billion from a deficit of GBP21.8 billion in the three months to March.
Analysts had expected the current account deficit to narrow to GBP12 billion in the second quarter.
EUR/USD hit pulled away from 1.3485, the session low, to hit 1.3503 during U.S. morning trade, still down 0.16%.
The pair was likely to find support at 1.3338, the low of September 18 and resistance at 1.3568, the high of September 19 and a seven-month high.
Industry data showed that U.S. pending home sales dropped 1.6% in August, more than the expected 1% decline, following a downwardly revised 1.4% fall the previous month.
Earlier Thursday, official data showed that the U.S. economy expanded by 2.5% in the second quarter, confounding expectations for a 2.6% expansion.
In addition, the U.S. Department of Labor said that the number of people who filed for unemployment assistance in the U.S. in the week ending September 20 fell by 5,000 to a seasonally adjusted 305,000, from a downwardly revised 310,000 the previous week.
The data came after a recent string of economic reports underlined concerns over the outlook for the U.S. economic recovery. Last week, the Fed said it wanted to see more evidence of a sustained economic recovery before it reduced stimulus.
Separately, U.S. budget concerns weighed on market sentiment as Republican leaders in the U.S. House of Representatives notified members that a vote on raison the debt limit could come as early as Friday.
The U.S. Congress is struggling to pass a spending bill to keep the government funded beyond October 1.
The euro was higher against the pound with EUR/GBP edging up 0.14%, to hit 0.8422.
Also Thursday, official data showed that U.K. GDP expanded by 0.7% in the second quarter, in line with market expectations.
On a yearly basis, U.K. GDP rose 1.3% in the three months to June, compared to expectations for a 1.5% increase.
A separate report showed that the U.K. current account deficit narrowed less-than-expected in the last quarter, improving to GBP13 billion from a deficit of GBP21.8 billion in the three months to March.
Analysts had expected the current account deficit to narrow to GBP12 billion in the second quarter.