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Forex - EUR/USD edges up to 2-day high after China data

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Forex Pros - The euro edged up to a two-day high against the U.S. dollar on Tuesday, after China released inflation data that was broadly in line with expectations, easing concerns that the country would tighten monetary policy even further.

EUR/USD hit 1.4445 during late Asian trade, the pair's highest since Friday; the pair subsequently consolidated at 1.4419, easing up 0.06%.

The pair was likely to find support at 1.4319, Monday's low and a seven-day low and resistance at 1.4550, Friday's high.

Market sentiment was boosted after Chinese government data showed that consumer price inflation rose at an annualized rate of 5.5% in May. Producer price inflation rose slightly more-than-expected, while retail sales and industrial production data all showed robust growth.

Meanwhile, the euro remained supported even after Standard & Poor's downgraded Greece's rating to CCC on Monday, making the country it's lowest-rated in the world. S&P said European policymakers look increasingly likely to impose a restructuring of Greece's debt.

But the euro was lower against the pound, with EUR/GBP slipping 0.17% to hit 0.8787.

Later in the day, the U.S. was to publish official data on retail sales and producer price inflation.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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