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Forex - EUR/USD rises in early U.S. trade

Published 07/29/2011, 12:22 PM
Updated 07/29/2011, 12:26 PM
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Investing.com - The euro moved higher against the U.S. dollar Friday, lifted by weaker-than-expected U.S. GDP numbers and the looming deadline for the White House and Congress to come to agreement on raising the nation’s debt ceiling.

EUR/USD advanced 0.34% to hit 1.4386 during early U.S. trade, after hitting the day’s high of 1.4413.

The pair was likely to find support at 1.4320, the day’s low, and resistance at 1.4536, Wednesday’s high.

A vote on a Republican proposal to end the debt impasse stalled in the U.S. House of Representative Thursday, as House leader John Boeher attempted to whip up support from more conservative lawmakers pushing for additional spending cuts in the deal.

The August 2 deadline for an agreement to raise the USD13.3 trillion debt ceiling remained elusive with President Barack Obama urging bipartisan compromise in a speech early Friday morning.

Before the opening bell, the U.S. Bureau of Economic Analysis announced that U.S. GDP grew only 1.3% for the quarter after a 1.9% increase in the previous three-month period. The numbers fell far shy of an anticipated 1.7% rise.

Meanwhile, European stocks moved lower as rating’s agency Moody’s put Spain’s credit rating on review for a possible downgrade.

The euro was lower against both the British pound and the Japanese yen, with EUR/GBP shedding 0.05% to hit 0.8748 and EUR/JPY down by  0.23% to hit 111.09.

Market players remained focused on progress between the White House and Congress on debt ceiling negotiations and the prospects for a resolution to ward off a U.S. default.



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