Investing.com - The euro slipped to a session low against the U.S. dollar on Wednesday, following data showing that U.S. pending home sales rose to the highest level since April 2010 in July and a separate report showing that U.S. second quarter growth was revised up.
EUR/USD hit 1.2519 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.2526, shedding 0.30%.
The pair was likely to find support at 1.2464, Tuesday’s low and a one-week low and resistance at 1.2572, the session high and an almost seven-week high.
The National Association of Realtors said its pending home sales index rose by 2.4% in July, easily surpassing expectations for a 1.0% increase.
Year-on-year, pending home sales rose at rate of 15.0% in July, beating expectations for an 11.1% increase, after rising by 8.4% in June.
Earlier Wednesday, the U.S. Commerce Department said gross domestic product increased at a seasonally adjusted annual rate of 1.7% in the three months to June, in line with expectations and up from a preliminary estimate of 1.5%.
The greenback’s gains were limited as Investors remained cautious ahead of a speech by Federal Reserve Chairman Ben Bernanke at the central bank’s annual symposium in Jackson Hole, Wyoming on Friday, amid ongoing speculation over how close the Fed is to implementing more stimulus measures.
Meanwhile, demand for the single currency continued to be underpinned by expectations that the European Central Bank is working on measures to help stabilize the euro zone's sovereign debt markets, ahead of its next policy meeting on September 6.
Italy saw borrowing costs decline to the lowest level since March earlier Wednesday, as it auctioned EUR9 billion of six-month government bonds, reflecting investor confidence that the ECB will soon act to lower high euro zone peripheral bond yields.
The euro was lower against the pound, with EUR/GBP sliding 0.35% to 0.7914, but remained little changed against the yen, with EUR/JPY inching up 0.02% to 98.65.
Also Wednesday, German Chancellor Angela Merkel said she was certain that Italian economic reforms will pay off following talks with Italian Prime Minister Mario Monti in Berlin and added that euro zone must improve its "co-ordination" over the coming months.
EUR/USD hit 1.2519 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.2526, shedding 0.30%.
The pair was likely to find support at 1.2464, Tuesday’s low and a one-week low and resistance at 1.2572, the session high and an almost seven-week high.
The National Association of Realtors said its pending home sales index rose by 2.4% in July, easily surpassing expectations for a 1.0% increase.
Year-on-year, pending home sales rose at rate of 15.0% in July, beating expectations for an 11.1% increase, after rising by 8.4% in June.
Earlier Wednesday, the U.S. Commerce Department said gross domestic product increased at a seasonally adjusted annual rate of 1.7% in the three months to June, in line with expectations and up from a preliminary estimate of 1.5%.
The greenback’s gains were limited as Investors remained cautious ahead of a speech by Federal Reserve Chairman Ben Bernanke at the central bank’s annual symposium in Jackson Hole, Wyoming on Friday, amid ongoing speculation over how close the Fed is to implementing more stimulus measures.
Meanwhile, demand for the single currency continued to be underpinned by expectations that the European Central Bank is working on measures to help stabilize the euro zone's sovereign debt markets, ahead of its next policy meeting on September 6.
Italy saw borrowing costs decline to the lowest level since March earlier Wednesday, as it auctioned EUR9 billion of six-month government bonds, reflecting investor confidence that the ECB will soon act to lower high euro zone peripheral bond yields.
The euro was lower against the pound, with EUR/GBP sliding 0.35% to 0.7914, but remained little changed against the yen, with EUR/JPY inching up 0.02% to 98.65.
Also Wednesday, German Chancellor Angela Merkel said she was certain that Italian economic reforms will pay off following talks with Italian Prime Minister Mario Monti in Berlin and added that euro zone must improve its "co-ordination" over the coming months.