Investing.com - The euro came off eight-month lows against the
dollar on Wednesday and held steady after investors brushed off
soft consumer sentiment data and kept a cautious eye on
In U.S. trading, EUR/USD was unchanged at 1.3464, up from a
session low of 1.3455 and off a high of 1.3475.
The pair was likely to find support at 1.3399, the low from Nov.
21, 2013, and resistance at 1.3549, Monday's high.
Earlier Wednesday, reports that two Ukrainian jet fighters were
shot down over the rebel-held city of Donetsk only days after
pro-Russian separatists allegedly shot down a Malaysian Airlines
flight with a missile rattled nerves.
Geopolitical concerns sparked fears that the fallout from the
Ukraine conflict, which could include fresh sanctions slapped on
Russia, will dampen global recovery, Europe's especially, which
weakened the euro earlier.
The single currency came off earlier lows on sentiments that the
U.S. could suffer as well, offsetting disappointing consumer
sentiment data out of euro zone.
The European Commission reported earlier that its preliminary
consumer confidence gauge fell to -8.4 in July from -7.5 in June.
Analysts were expecting an unchanged reading.
Meanwhile profit taking wiped out the dollar's data-fueled gains
posted against the euro on Tuesday and steadied the pair.
The Labor Department reported Tuesday that the U.S. consumer
price index rose 2.1% in June, unchanged from the previous month
and in line with forecasts.
On a month-over-month basis, U.S. consumer prices were up 0.3%
after a 0.4% increase in May, also in line with expectations.
June's core inflation rate, which excludes food and energy
costs, rose by just 0.1% from May and 1.9% on year, slightly below
market calls for 0.2% and 2.0% readings, respectively, which
illustrated how gasoline was driving the headline CPI up, though
markets viewed the numbers as fundamentally healthy anyway.
Also on Tuesday, the National Association of Realtors reported
earlier that existing U.S. home sales rose 2.6% to 5.04 million
units in June from 4.91 million in May, beating market forecasts
for a 2.0% rise to 4.97 million units, which also pushed the dollar
up to levels ripe for profit taking.
Elsewhere, the euro was up against the pound, with EUR/GBP up
0.14% at 0.7903, and up against the yen, with EUR/JPY up 0.02% at
In the U.K., the minutes of the Bank of England's June meeting
released earlier revealed that policymakers voted unanimously to
keep monetary policy unchanged last month.
The minutes also said weak wage growth in the face of strong
employment growth made it difficult to gauge the degree of slack in
the labor market.
On Thursday, the euro zone is to publish preliminary data on
private sector activity, while Germany and France are to also to
publish data on private sector growth. Meanwhile, Spain is to
release its latest employment report.
The U.S. is to produce data on unemployment claims,
manufacturing activity and new home sales.
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