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Forex - Euro rebounds from 2-week low against dollar

Published 02/08/2011, 02:36 AM
EUR/USD
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EUR/GBP
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Investing.com – The euro rebounded from a two-week low against the U.S. dollar on Tuesday, as markets overcame concerns over weak German manufacturing data.

EUR/USD hit 1.3646 during late Asian trade, the pair’s highest since Friday; the pair subsequently consolidated at 1.3643, gaining 0.44%.

The pair was likely to find support at 1.3507, Monday’s low and resistance at 1.3824, the high of February 3.

Data on Monday showed that showed that German factory orders fell significantly more-than-expected in December, driven by a shortage of large orders and low demand for new vehicles from outside the euro zone.

The surprisingly weak data highlighted the German economy’s dependence on external demand and raised concerns over the sustainability of a recovery in the euro zone's largest economy.

The soft data triggered selling of the euro, although analysts said the soft figures partly reflected a strong reading in November.

The euro was also up against the pound, with EUR/GBP rising 0.14% 0.8442.

Later in the day, Germany was to publish official data on industrial production, while the U.S. was to publish the results of a survey on economic optimism.


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