Investing.com – The euro trimmed losses against the U.S. dollar on Wednesday, retreating from a three-day low after a sharp decrease in U.S. new homes sales in February underlined divergent euro zone and U.S. interest rate expectations.
EUR/USD clawed back up from 1.4106, the pair’s lowest since Friday, to hit 1.4151 during early U.S. trade, shedding 0.41%.
The pair was likely to find support at 1.3979, last Friday’s low and resistance at 1.4247, Tuesday’s high and a four-and-a-half-month high.
Earlier in the day, the Commerce Department said new home sales dropped 16.9% to a seasonally adjusted 250,000 unit annual rate, the lowest since records began in 1963, from an upwardly revised 301,000-unit pace in January.
However, the euro remained under pressure as the fate of Portugal’s minority government was hinging on a vote on austerity measures later in the day, fanning fears that the country would follow Ireland and Greece in seeking a bailout from the European Union and the International Monetary Fund.
The euro was also down against the yen, with EUR/JPY shedding 0.47% to hit 114.40.
Also Wednesday, hopes that EU leaders would take a decision on enlarging the regions bailout fund at a summit this week were dashed after the release of a draft document prepared for the meeting. Leaders were believed to have postponed the decision until late June.
EUR/USD clawed back up from 1.4106, the pair’s lowest since Friday, to hit 1.4151 during early U.S. trade, shedding 0.41%.
The pair was likely to find support at 1.3979, last Friday’s low and resistance at 1.4247, Tuesday’s high and a four-and-a-half-month high.
Earlier in the day, the Commerce Department said new home sales dropped 16.9% to a seasonally adjusted 250,000 unit annual rate, the lowest since records began in 1963, from an upwardly revised 301,000-unit pace in January.
However, the euro remained under pressure as the fate of Portugal’s minority government was hinging on a vote on austerity measures later in the day, fanning fears that the country would follow Ireland and Greece in seeking a bailout from the European Union and the International Monetary Fund.
The euro was also down against the yen, with EUR/JPY shedding 0.47% to hit 114.40.
Also Wednesday, hopes that EU leaders would take a decision on enlarging the regions bailout fund at a summit this week were dashed after the release of a draft document prepared for the meeting. Leaders were believed to have postponed the decision until late June.