Forex - EUR/USD tumbles to 4-day low after mixed U.S. economic data

Published 10/26/2010, 11:28 AM
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Investing.com – The euro extended earlier losses against the U.S. dollar on Tuesday, tumbling to a 4-day low, following the release of mixed U.S. economic data.

EUR/USD hit 1.3839 during late European trade, the pair’s lowest since October 20; the pair subsequently consolidated at 1.3860, tumbling 0.75%.

The pair was likely to find support at 1.3697, the low of October 20 and resistance at 1.4079, Monday’s high.

Earlier in the day, U.S. data showed that the S&P/Case-Shiller home price index rose less-than-expected in August, gaining 1.7% after rising by 3.2% in July. Analysts expected the house price index to rise by 2.0% in August.

Commenting on the report, David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s said, “Home prices broadly declined in August, indicating that the housing market continues to bounce along the recent lows”.

The euro was also down against the pound, with EUR/GBP plunging 1.68% to hit 0.8732.

Also Tuesday, U.S. data showed that CB consumer confidence rose more-than-expected in October while a separate report showed that the Richmond Manufacturing Index also rose more-than-expected in October.

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