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Forex - EUR/USD edges higher in thin trade

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Investing.com - The euro edged higher against the dollar in thin trade on Tuesday as the dollar remained broadly weaker following soft U.S. housing data on Monday.

EUR/USD hit 1.3208 during late Asian trade, the session high; the pair subsequently consolidated at 1.3187, edging up 0.02%.

The pair was likely to find support at 1.3133, Monday's low and resistance at 1.3253, the high of June 21.

The dollar came under pressure after data showing that U.S. existing home sales fell unexpectedly in June dampened expectations that the Federal Reserve will start scaling back its asset purchase program this year.

The National Association of Realtors said that existing home sales fell 1.2% to an annual rate of 5.08 million units in June, but still remained close to three-and-a-half year highs.

Demand for the euro continued to be underpinned after Portugal's Prime Minister Pedro Passos Coelho said Monday the current government will remain in office after political leaders resolved a deadlock that had threatened to derail the country's EUR78 billion bailout program.

The euro was little changed against the pound, with EUR/GBP dipping 0.01% to 0.8584 and was slightly lower against the yen, with EUR/JPY sliding 0.14% to 131.21.

Earlier Tuesday, Japan's government upgraded its view of the economy for the third consecutive month in July, saying "areas of self-sustaining recovery can be observed."

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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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